In what is yet more evidence that the UK is in a debt spiral, nearly 1.4 million holidaymakers are still paying interest on last year’s summer holiday and another 926,000 take a year to pay it off, according to research from MoneyExpert.com.
The survey shows that people take an average of 3.8 months to clear the debt of their summer jaunt, but not everyone gets themselves into financial trouble by going on holiday, as approximately 2.3 million have paid off their holiday debts within a month.
MoneyExpert.com believes that the rising interest rates will also serve to increase pressure on Britons when it comes to paying off debts. “Holidays are a time for getting away from it all but too many of us are just getting into debt and building up troubles for the future.” says Sean Gardner, Chief Executive of MoneyExpert.com.
“We all deserve a holiday but running up debt is not going to help in the long-run. Lenders are getting tough by increasing interest rates and by cutting back on the amount they will lend. Borrowers need a strategy to control their debts.
“Anyone with debt problems needs to cut the amount they are paying each month and to draw up a plan to become debt-free. That should include switching debts to more competitive credit cards and consolidating debts into a personal loan. In some cases it could include taking out a secured loan if you are a homeowner.”
Around six per cent of Britons pay off their holiday debt within a month or less, while another two per cent take two months and a further two per cent take six months to clear their holiday debt.
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