Britons overspending on holidays

Britons are overspending when on holiday as they refuse to compromise on the quality of a break.

Research by Savoo has found that over 65 per cent of British holidaymakers will spend far more than they have budgeted for. This is thought to be because many are fed up having to scrimp and save in the current economic climate.

While adopting a carefree attitude may be fun in the short-term, consumers need to bear in mind their long-term financial commitments, as they could be left dealing with debt problems further down the line.

Nearly one-quarter of those questioned said they overspent by 20 per cent on their last trip – with 45 per cent of these individuals just adding the additional costs to their credit card. Figures from Step Change show that UK credit debt currently stands at £54.6 billion, so people should be focusing on tightening their belt instead of splashing the cash.

Simon Bird, general manager of Savoo, stated: “The best way to stay on budget on a holiday is to get a great deal in the first place and right now with the market so competitive, there are some real bargains to be had. By doing that it gives you the freedom to spend a bit more and treat yourself when the mood takes you.”

The main reason that people are failing to stick to their budget is alcohol, as 47 per cent admit they do not care about how much they spend when they go for a night out when on a break.

On top of this, 72 per cent said they are not worried about the debt they accumulate on holiday. However, this reckless attitude could see people end up in financial trouble and then action will need to be taken.

One option is a debt management plan, as this helps consumers to bring their arrears under control and should also stave off any actions such as County Court Judgments.

By Amy White