Millions ‘wasted on holiday junk’

British holidaymakers are wasting millions of pounds each year on what most people would consider to be junk, according to a recent study.

Figures compiled on behalf of Cahoot have shown that a third of British people feel compelled to spend money unnecessarily while away on holiday, which for many will mean adding to their debt management burden.

Items such as sombrero hats, stuffed donkeys and handbags are among the favourite ways for British holidaymakers to waste their own cash on holiday, the financial services firm reports.

Most of these sorts of frivolous transactions are carried out with cash, but around 16 per cent are made using credit card debt, which has to be paid off on return to the UK, Cahoot explains.

The online bank’s director Matthew Timms commented: “Holidays are all about fun and splashing out, but as our research shows it is still important to keep a close check on your finances when you are taking a break.”

Earlier this month, the Nationwide Building Society warned that many holiday making Britons are unwittingly liable to foreign currency loading fees when they spend money on their credit cards outside the UK.