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A staggering 14 million UK adults have taken or booked holidays using their credit card already this year, recent data has shown.
Spending billions on credit as a country, 38% of British holidaymakers chose to pay for their trips in this way; presumably driven by lack of available funds or desires for greater financial security on large purchases.
While credit cards offer instant access to additional funds that may be required to complete a holiday booking, the research shows that travellers could spend longer than expected paying it back.
Most borrowers expect to have settled their debt in as little as four months but in reality 34% take at least six months to do so and 11% take more than one year to fully repay their borrowed cash.
With regards to the amount borrowed, 5.85 million tourists borrowed over £1,000 to fund their holidays while a further 1.07 million used credit worth £3,000 or more.
Some individuals even spent as upwards of £5,000 – 357,522 people to be exact.
Pay4Later, the firm behind the research, also found that England’s North West contained some of the country’s most prolific credit card spenders.
Here, 40% of individuals had already taken or booked holidays with their credit card – 2% higher than the national average of 38%.
In actual terms, this equates to 14.21 million adults paying for part or all of their holiday with credit.
The average amount spent by holidaymakers from the North West was £1,130 and meant that as a region a collective £16.1 billion was put on plastic for holidays.
Planning your holiday
This data shows that credit is becoming an increasingly popular way of funding holidays and trips away with Brits clearly reluctant to give up their holidays no matter what their financial situation.
A massive 79% of Brits admitted that they had either already been on holiday this year or at least booked a trip and a considerable portion of those trips will have been paid for by credit cards – either in part or in full.
For those still yet to book it is important that finances and budgets are considered closely and credit cards are only used if repayments can be managed without causing long-term debt.
Travellers are also advised to invest in single-trip travel insurance to protect themselves – and their cash – whilst away
Date Created: 09/07/2015