How to make your holiday money go further
Confused.com is reminding those planning a winter sports or sun holiday this New Year to make their money go further by thinking about how they will pay for the trip, as well as how best to spend when they're away.
The comparison site has revealed that savvy spenders could in fact pocket £67.50 by paying for their trip using the right card, enough to pay for some après ski drinks and dinner. Chris Griffiths, head of credit cards at Confused.com reveals his three top tips below:
1. Booking the holiday
Chris says "A credit card can be a great way to cover the cost of your holiday. Whether you're looking to spread the cost of the repayments with a 0% interest card or even if you've been saving hard and have the cash ready to pay for your holiday it's worth considering using a reward credit card to earn yourself some additional cashback or airmiles towards another holiday. A one week skiing holiday for two in Courcheval, France for example, could earn £67.50 in cashback. Also, any purchase where the total cost exceeds £100 is covered under section 75 of the consumer credit act, meaning the credit card company is jointly liable should anything go wrong with the booking - i.e. you'll get your money back from the credit card company and they'll chase the travel agent."
2. Spending money once you're in resort
Chris says: "It's important to think about how you will pay for things once you arrive at your holiday destination. The card you used to book the holiday might not be the best one for use abroad, and the fees and charges can vary greatly, for example spending £500 on a credit card not designed for use abroad could end up costing an extra £13.75 in charges."
3. Which currency to pay in
Chris says: "It might sound silly but it's important to know what currency to pay in when you're on holiday. Many retailers, restaurants and even cash machines will now give you the option to use sterling as well as the local currency i.e. Euros. By paying in sterling you are allowing that retailer or bank to handle the conversion from the local currency and you won't know what exchange rate they're offering or whether there are any fees or charges until you're back home and the bill lands on your doormat. Always opt to pay or transact in the local currency to ensure any charges are those from your own bank at home which you already know about. If you're not offered a choice on the receipt refuse to pay and ask them to bring you another bill in the local currency."
"These may only seem like little things but over the course of the week they can really add up. Credit and debit cards do change their terms and conditions for use abroad so check out what yours will be in plenty of time to allow you to apply for a new card if necessary. For those concerned about making applications which could affect their credit rating Confused.com has a credit checker tool, allowing you to find out the likelihood of being accepted for a particular card before making a full application."