Money Talk
Credit cards trump debit cards when it comes to holiday spending. Some debit cards have red-hot charges ever y time you use them while spending on credit cards can be as cheap as using cash.
Say the bill for dinner comes to 25 Euros, you could pay 30p more using a credit card. But settle up by debit card and it can cost you another £2 says independent financial business Defaqto.
It can be confusing knowing which charges you’ll be slapped with, and how to avoid them so here’s my tips on the ones to watch for.
Cash withdrawals – you can be clobbered with a “withdrawal” fee from your card company, or bank. Some charge from £1.50 a time.
Spending in shops – always pay in the local currency when paying by card. If you have the price converted to pounds you’ll pay 5% more as local outlets set their own exchange rates.
Check your card charges before you go with the “charge checker” tool at WWW.MONEYSAVINGEXPERT.COM. It means you’ll know the best card to use or apply for a cheaper one.
With “pre-paid” cards you load up currency in advance but I’ve never been a fan as some small local supermarkets and souvenir shops don’t take them and they can have fees or poor rates.
Don’t forget credit cards come with built-in protection. Buy something for £100 or more, and if there’s a problem, like your hire car company going bust, you can claim a refund from your credit card company.