Holiday spending stings Brits for £355m

The site suggests that unless consumers are fully aware of the kind of costs associated with spending on their plastic products while abroad they consumers could be heightening their debt management problems and face a hefty bill when returning to the UK.

Cash withdrawal charges, exchange rate loading fees and other transaction charges will account for the majority of the £355 million and uSwitch expects to see Brits abroad pay millions for using their credit cards during 2007.

“Your existing debit and credit cards may not always offer the best deals for overseas cash withdrawals and purchases, so some forward planning could avoid these charges altogether,” explains Nick White, director of financial services at uSwitch.

Meanwhile, figures from Unbiased, the financial advice firm, suggested recently that Britain’s debt management problems were being exacerbated by the three million people who admit to being “frivolous” with their cash.