Gap year travellers warned to use card for emergencies

Price comparison website Moneysupermarket.com said that with charges for foreign use and interest rates as high as 17.9 per cent on cards, students travelling after graduation need to be careful with how they use their plastic.

However, Stuart Glendinning, managing director of the website, said: “There are certain steps which travellers can take ahead of their venture to ensure they make the most of the financial products available to them.”

New graduates are unlikely to have built up a credit record, meaning that many would have no option of obtaining the best credit card deals.

While encouraging students to shop around for the best rates, he warned that most credit cards had foreign exchange charges and ATM withdrawal fees that can be “punitive”.

Only through careful money management of credit card debt and other charges can students avoid returning to large debt on return from gap years, Moneysupermarket.com warned.