Brits book last minute foreign getaway

With just over a fortnight to go until most schools return, a total of 1.8 million Britons (4 per cent) have booked a last minute holiday abroad according to new research sponsored by GE Money Home Lending on behalf of independent financial advice website Moneybasics.co.uk.

Experts warn however that holiday makers who rush their booking risk paying as much as 140% more for a two-week family break than they would if they had shopped around for the best deal. Moreover, the research found that 1.98 million people are still paying off holiday debt accumulated in 2008. The average holiday debt from 2008 amounts to £1,012 - or a collective £2 billion. Much of this is the result of failing to secure the cheapest prices on holiday essentials such as flights.

While 1.8 million are already packing their bags, the research found that a further 4.6 million (10 per cent) are still contemplating a trip abroad. London is the centre of the last minute exodus with almost one in ten Londoners (8 per cent) planning to travel abroad and a further 16 per cent still considering it.

Those people with children of school age were marginally more likely to be squeezing in a holiday with 5 per cent of those with children aged 5 - 15 intending to travel versus 4 per cent of those without children.

Moneybasics.co.uk has warned that rushing a holiday booking can result in higher costs. Researchers for the site analysed lowest and highest quotes for travel insurance, car hire, flights and hotels on a like-for-like basis for a family of four travelling to a selection of 12 of the top holiday destinations identified by ABTA and the Foreign Office as holiday hotspots for UK tourists in 2009.

Across the 12 destinations the cheapest travel insurance policy averaged £21.19 versus £69.73. The results were similar when it came to car hire. The cheapest two-week hire at each of the 12 locations averaged £406 while the most expensive hit a staggering £704.

When the cost of flights, car hire, insurance and hotels was taken into account the difference between the cheapest 12 packages and the most expensive 12 at each of the destinations in countries such as Spain, Turkey and Mexico came to very substantial 140%.

When it comes to insurance while it is vital that people shop around for best deal, it is important holidaymakers don't sacrifice insurance cover for price. Reading the small print on policies is extremely important as different insurers have different exclusions and cover levels. While some policies may cover water sports such as jet skiing others may exclude these activities, which could leave people facing significant medical bills if they were to sustain an injury when engaged in these pursuits.

People looking for help to budget their finances can find useful advice at moneybasics.co.uk. The site includes a Spendometer that enables users to effectively and easily manage their weekly budget, via their mobile phone.