Foreign credit card charges ‘could result in debt woe’
Charges incurred by using credit cards abroad could cause debt worries among British holidaymakers, new statistics have suggested.
According to res…
Charges incurred by using credit cards abroad could cause debt worries among British holidaymakers, new statistics have suggested.
According to research carried out by Post Office Credit Card, British tourists are set to waste £62 million on such fees during the remainder of 2010.
The study found £3 billion will be spent by Brits on the products between now and the end of the year, with 4.8 million consumers at risk of experiencing additional payments.
More than half (55 per cent) of those questioned said they would face a charge for using their card overseas, with an extra 13 per cent admitting they did not know whether their provider would charge a fee.
The organisation warned many could be adding payments of up to 2.99 per cent to purchases.
Almost half (42 per cent) of individuals heading to foreign shores this year stated they were unaware as to what the trip would cost them.
Just under a third (32 per cent) admitted they did not know if a fee is charged and 29 per cent claimed they are aware of a penalty but are clueless to its amount.
Only 26 per cent stated they knew how much a fee would be.
Az Alibhai, head of cards at Post Office, commented: “This summer millions of travellers will waste money on unnecessary fees and worryingly many are not even aware of how much this will increase their holiday spending.”
Recent research from Bright Grey found more than ten million people in Britain will rack up debt during the sunny season in order to permit them a holiday abroad.
By Joe Shervin
Credit card charges abroad do vary and are normally around the 2.75% mark. Add this to a terrible exchange rate that the card company offers and over a 2 week holiday, this can add up to quite a considerable amount.
The days of Travellers Cheques are almost gone (some are still being used) and carrying cash around a foreign destination can be a risky way forward.
When going on holiday at the same time as managing your money, look at prepaid travel cards – they are MasterCard branded and not only is it a lot safer than carrying cash, the exchange rates are good and there are no transaction charges.
If your lucky enough to be travelling this summer, still watch your budget and utilise one of these cards