Holidays are liberating – but for a quarter of Britons, the annual dose of sun, sea and sand is far too expensive for comfort.
No less than 12 million of us get into debt because of our yearly breaks, according to a new study from
CreditExpert.co.uk.
The survey by Ipsos MORI on behalf of the online credit monitoring service from Experian® reveals that 27 per cent use a credit card, take out a loan, dig into an overdraft or even borrow from relatives to finance their fun. A hardcore of six per cent – the equivalent of more than 2.5 million adults – say they get into debt most or every time they take a holiday.
Enjoying themselves too much is the financial downfall of many, with 22% of those who go into the red admitting that holiday spending puts them over their fiscal limits. Another 18% cheerfully own up to not thinking about the cost until they’ve got home again. 9% are so relaxed about spending that they simply lose track.
Another sixth – 15% – are afraid of letting down their partner or family and consciously spend too much. A further 30% pay off the debt over the year and are happy to do so, while a canny 11%use a credit card but pay off the balance before any interest is charged.
Age does not mean financial wisdom
Different age groups cite very different reasons for falling into holiday debt. While 38% of 18-24 year olds say they only think about money later, 33% of pensioners overspend because they do not want to upset their partner or family, while 37% of 25-34 year olds bust their budget by having fun during the holiday.
West Midlanders are the most likely to get into debt because of holidays – 26% of them occasionally, most times or always feel the pinch because of their vacations. They are followed by people living in the South East, at 21%.
The least likely to feel the financial heat live in the North East and the East, where only 8% overspend because of holidays. Almost as frugal are East Midlanders and the Welsh, at 9%.
Men spend more
And if you thought that it’s women who are impulse buyers, think again. When it comes to over-the-top spending at the resort, 18% of women admit to getting carried away – against 26% of men.
There are at least two ways you can avoid getting into holiday debt. Either you can simply not go on holiday – 18% of Britons do this.
Or if you can’t survive without that break, you should get a full overview of your debts before you book a break. The simple way to see what you owe – and what you can afford – is to check your credit report, which gives details of what you owe, how well you manage your repayments and much more.
To see your free Experian credit report and take advantage of a 30-day trial of CreditExpert, click here.
