Holiday debt outstrips our Christmas bills

HOLIDayMaKERS racked up more debt on their summer break this year than they did on their Christmas spending, according to research.

Borrowers put a total of £9.7billion on their credit cards this summer, compared to £8.5billion during the festive season last year – an extra £1.2billion.

More than half of holidaymakers used credit cards to pay for flights and accommodation and ended the summer with an average bill of £473, according to comparison site uSwitch.com. Two in five of those with holiday debt believe it will take them at least two months to pay it off. By comparison, the average credit card debt built up over Christmas was £452, according to a survey of more than 2,000 people.

Only half of holidaymakers using cards knew how much their provider would charge them for doing so, uSwitch said.

Major banks charge an average commission of 2.85 per cent on each overseas transaction. Some add a £5 fee each time a credit card is used abroad.

Experts said the figures raise further concerns that an increasing number of Britons are living beyond their means. Families now owe a record £213.5billion on credit cards, car finance and short-term loans, with households borrowing £800million in the year to July alone.

a spokesman for debt charity StepChange said a record number of people are seeking its help and urged anyone who is struggling to keep up with their credit commitments to seek free debt advice as soon as possible.