British consumers are borrowing rather than saving to finance their holidays, running the risk of getting deeper in debt according to a study commissioned by Callcredit.
The independent survey conducted on behalf of the credit reference agency has revealed that nine per cent of people in the UK spent more than £1,000 per person on their last holiday – and that’s not including spending money.
With summer holidays now being considered a necessity rather than a luxury as historically the case, we are now looking for quick financial fixes to allow us the freedom to jet off abroad – borrowing on credit cards and taking out loans to ensure we have the funds to enjoy ourselves.
Owen Roberts, consumer credit expert at Callcredit explains: “With personal debt increasing by £1 million every four minutes in the UK and additional research showing that 4.2 million Britons do not have any qualms about jetting off on their next holiday before actually paying for the last, it appears we have the “fly now, pay later” mentality.”
“We would advise consumers to be more realistic about what they can comfortably afford and ensure that, if they do borrow money to fund a holiday, they are fully aware of the repayment terms and are at ease with meeting these.”
The age groups most likely to find this the norm are the 18-24s and the 35-44s who consistently borrow to finance their travels (13 per cent of each).
And while Londoners and those from the South are the most likely to borrow cash to fund their holiday (10%) 17 per cent people of in the Midlands and Wales claim to spend under £100 on their summer breaks.
The Scots were found to be the least likely to borrow with only eight per cent funding their holidays this way.
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