Dash for cash leaves holidaymakers short

Half of the people heading overseas for holidays are making expensive last-minute dashes for cash rather than using cheaper, safer and more convenient options.

Research by moneysupermarket.com and travelsupermarket.com found half of the people leaving our shores will be splashing the cash rather than using debit, credit or prepaid cards. An additional 16 per cent will rely on travellers cheques.

Steve Willey, head of travel money at moneysupermarket.com, said: "It is sad to see so many people paying far more than they need to. Cash and travellers cheques are a more expensive option than the best plastic.

"Making some smart moves now rather than relying on cash from the airport will give you more spending power on your holiday.

"The formula is pretty simple - get the right debit card and credit card now or, if you don't have them, get the right prepaid card.

"Prepaid cards offer the best foreign exchange rates and anyone can have one. But you need to be sure to get one with the lowest fees.

"CaxtonFX and some FairFX prepaid currency cards will work out far cheaper than the bulk of credit and debit cards.

"Nationwide's Flex debit card is best for withdrawing cash from foreign ATMs, but it is better to use a credit card without a foreign loading charge for purchases. Credit cards give you extra protection for purchases and, with zero per cent on purchases for six months, the Abbey Zero is an excellent option. The Post Office Platinum and Nationwide Gold cards, which are equally good for foreign purchases, offer zero per cent on purchases for three months."

moneysupermarket.com's other tips for travellers

If you have a credit card, make sure your monthly repayment is covered by direct debit

Write down the emergency numbers for your travellers cheque or card providers in case they are lost or stolen

When paying with plastic, always do so in the local currency. Don't be tempted if a foreign retailer offers to convert your purchases into pounds because they may charge you at a higher exchange rate.

On the flight home, beware if the airline offers to let you pay for something in euros and give you change in pounds. You may be stung on the exchange rate.