Holiday fever sends Brits jetting into the red

12 million Brits go into debt paying for holidays, according to a new study on holiday spending by CreditExpert.co.uk, the online credit monitoring service from Experian.

More than a quarter (27 per cent) pays on credit, such as a credit card, taking out a loan or using their overdraft, to fund their trips, and more than one in 20 (six per cent) say they go into the red most or every time they go on holiday.

Despite recent interest rate rises and the ever-increasing cost of living, there seems to be a relaxed attitude about holiday spending among the credit generation. Almost a fifth (18 per cent) of Brits whose holidays put them in debt admit that their trips are so important to them they think about the money later and a sixth (15 per cent) succumb to peer pressure to avoid disappointing their partner or family.

The research, which is based on a survey of 2,000 adults, also reveals:

West Midlanders (26 per cent) are the most likely to go into debt from holiday spending
18-24s are most carefree, with more than a third (38 per cent) admitting they will think about the money later

Men (26 per cent) are more likely than women (18 per cent) to get carried away spending when they get to their destination

Almost one in ten (nine per cent) say they do not intend to go debt, they just lose track

Planning ahead

The study shows that many are failing to plan ahead when it comes to their holidays. More than a fifth (22 per cent) who go into debt admit they lose track of their spending while on holiday and 18 per cent say they only think about the cost after the holiday.

Those aged 25-34 are the most likely to get carried away with spending once they get to their destination, with almost four in ten (37 per cent) saying this is the cause of their debt. Although many believe woman are more impulsive spenders than men, this is contradicted by the survey, which shows that of those who run up travel debts, men (26 per cent) are more likely than women (18 per cent) to be over-enthusiastic when spending while on holiday.

North West debt

West Midlanders are the most likely to go into debt from holiday spending, with more than a quarter (26 per cent) stating their holidays sometimes, often or always push them into debt. In contrast, those in the North East and the East appear to handle their holiday finances best. Only eight per cent say they ever go into holiday debt, making them the most financially savvy holidaying regions.

Jim Hodgkins, Managing Director of CreditExpert.co.uk, says: “It’s worrying that, as a nation, many of us have a ‘me now, debt later’ attitude to our finances. Most of us work hard and need a well-earned break, but it’s important that we plan ahead and ensure our bank balance can handle the large outgoings that holidays and other expenses entail.

“Keeping a budget for the cost of the vacation as well as day-to-day holiday expenses will help you avoid going into debt. Missed credit repayments are likely to have a negative impact on your credit report, which means lenders may not want to offer you credit in future.

“To help you stay on top of your financial situation an online credit report monitoring service such as CreditExpert will provide a summary of your credit status and alert you to any changes in your credit report. You can get a free 30 day free trial at www.creditexpert.co.uk.”