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Families forced to rely on credit for dream holidays
A third of people will use a credit card to pay for their big trip
Nearly half of holidaymakers are reliant on credit to pay for their dream holidays, as they are forced to pay 79% or almost £5,000 more for trips taken during the allocated school holidays.
New research by Admiral Loans has found that while 75% of adults are planning a holiday of a lifetime in the next 12 months, a third (33%) will use credit cards to fund their trip while 6% use personal loans.
More than half of those asked admitted that they feel pressure to go on holiday from society, partners and children, even though 68% are concerned about how they will finance their trip.
For many, the cost of their holiday lasted longer than the memories; 15% of those asked were still paying their trip off more than a year later.
UK CEO of Admiral Loans, Scott Cargill, is urging families to think carefully about how to best finance their trip and consider the APRs of any credit they use to fund their holiday.
“We’re a nation of holiday lovers and many Brits are making plans for dream trips this year. Pressure from children, partners and society in general is making over half of us feel like we need to go on a holiday, but we can’t escape the fact that family holidays are expensive, especially when trips are in school holidays when prices inflate steeply. It’s little wonder that 70% of us are worried about being able to afford a trip abroad.
“We’ve found that three times more people are taking a personal loan to pay for their holiday of a lifetime than a regular trip, and that three times more people are taking over a year to pay their special trip off, adding financial strain to already stretched household finances.
“If holidaymakers are not going to be able to realistically pay for their trip in cash, we’d urge them to think carefully about how to best finance their trip and consider the APRs. With holiday costs comparing in price to some small and second-hand cars it’s a financial decision that needs the same level of planning and consideration as any other large purchase.”
Top tips to save for that holiday of a lifetime
- Accommodation option – self-catering or renting holiday homes allow for home cooked meals and packed lunches
- Family piggy bank – get the whole family involved with a savings account assigning targets to each member on a Disney themed chart.
- Stay alert – special offers and deals could bring the cost of your holiday down
- Book in advance – this allows you to put down a deposit and pay the remaining balance closer to departure date so you have more time to save.
- Cash in on air miles – flights can be one of the biggest costs so being part of loyalty schemes rewarding frequent flyers or hotel stays could be useful
- Alternative destinations –theme park resorts closer to home offer fun alternatives, such as Port Aventura in Salou, Spain.
- Set a daily budget – workout how much you can afford to spend before departure, allocate a daily budget and stick to it.
- Buy currency at the right time – signing up for a rate alert with an online currency provider which will alert you when the currency you need is in your favour giving you more for your hard earned pound.