Summer holidays see millions getting into debt

More than 2.5 million British adults will get into debt after taking holidays this year, Credit Expert has said.

The figure is twice as high as last summer.

Experion’s credit monitoring service also said a quarter (24 per cent) of adults are scrapping their holiday plans for this year – 43 per cent of which are concerned about the credit crunch’s effect on their finances.

Credit Expert’s managing director Jim Hodgkins said people are looking more carefully at their credit responsibilities.

“The credit crunch is really biting now and it will be painful for people to make the choice between not going on holiday or taking on more debt to do so,” he said.

A total of 16 per cent said a holiday was so important that spending was only considered after they returned.

This week Asda personal finance said travellers should take out insurance to cover them against out-of-pocket expenses.

By Morwenna Kearns