Brits overspend holiday budget

Seven out of ten Brits have overspent on holiday by a hefty £278 on average this summer (71%), according to new research from Savebuckets.com.

At a time when Brits are set to face an economic recession, the research quantifies the financial aftermath of this year’s holiday season, highlighting the potential worsening effect holiday overspending might have on the current economic downturn.

Savebuckets.com questioned a GB representative sample of more than 2,000 people on the financial impact of their summer holiday and results show that the majority of Brits are still nursing their holiday hangover.

At a time when Brits with back-up savings is at a 50 year low, the findings reveal that more than two in five British holiday makers who have gone over budget, dipped into their savings to fund their holiday overspending (45%).

More than one in ten Brits going over budget had to borrow money or take out a loan to deal with the financial aftermath of their holiday (15%).

Of those not able to stay within their budget limits, more than one in ten have taken a second job or worked longer hours to cover their excess spending (15%).

Forget stereotypical notions of thrift-happy women - they were less likely than men to spend their way into financial ruin whilst away on holiday (72%) compared to men (69%) – and spend £68 pounds less.

Top five measures taken to cope with a holiday hangover:

Raid savings 45%
Borrow money/take out a loan 15%
Take on a second job or work longer hours 15%
Pay monthly bills by credit card 13%
Cut down on food spending 7%

Londoners were most likely to overspend whilst on holiday. More than seven in ten (73%) exhausted their wallets while those from the North were least likely (69%) to get cash-happy. Londoners also overspend the most – with the average excess spending amounting to £324 compared to holidaymakers from the North, £199.

When it comes to coping with the holiday hangover, Northerners were most likely to raid their savings to cover their excess spending (46%).

James Wenger, Marketing Manager of Savebuckets.com commented: “At a time when household overspending has become a big issue, it has never been more important to highlight how Brits can survive the crunch without making sacrifices.

With one in four people worried about how they will make ends meet, it is important that people take the time to manage their money and shop cleverly so that they can still afford the important things in life. Savebuckets.com can help consumers regain control of their finances and save money during times of rising financial pressures.”