Blowing the holiday budget

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Holidaymakers save long and hard for their holiday yet can easily get carried away with their spending whilst abroad.

In fact, a recent survey has revealed that 61% of British holiday makers admit to overspending while they are away on holiday.

Current domestic economic conditions and the decrease in the value of the pound against many currencies mean that going abroad could become more of a luxury than ever before. However there are ways for astute holidaymakers to enjoy their holiday and stick to their budget!

One way to keep track of spending, which is as flexible as cash, is to use a prepaid debit card which enables holidaymakers to upload money before they go on holiday, giving them access to cash anywhere in the world. This cards are available to order online free of charge and mostly available in Pounds, Euros and US Dollars, it is a great alternative to carrying cash, travellers cheques or debit and credit cards.

You can also take your credit card but be prepared to deal with the heavy fees attached by most providers, typically chanrging you £2 or 2% of the transaction, depending on which is greater. In case of using cash machines, you’ll start paying interest from the moment you withdraw cash at a higher rate than usual.

Debit cards are generally a cheaper option than withdrawing cash with a credit card, allowing you to take out cash mainly without the levies. Most providers will charge you each and every time you spend on your debit card around £1.25 to £1.75.

Preapid currency cards incur a 2.75% fee to use abroad in addition to a 1.5% commission for loading GBP onto the card, however it would be 0% for EUR and USD.

All card types are liable to face a ‘dynamic currency conversion’ on purchases, meaning that some retailers will apply their own conversion rate when turning their native currency into GBP. This is often hidden and generally offers a poor exchange rate - certainly something to be aware of when spending on all cards abroad.

If you are worried about overspending at some point on holiday using a card is the best way of keeping your holiday finances under control and there is also no need to worry about debit or credit card charges or having your credit card details stolen.
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