Gloucestershire Echo - - YOUR MONEY -


If you have a dream hol­i­day in mind, start sav­ing as soon as pos­si­ble. By sav­ing con­sis­tently, you’ll have more chance of be­ing able to pay for a large chunk of the trip with­out need­ing to use credit to fund it. Start a hol­i­day sav­ings ac­count and set up a stand­ing or­der to put some­thing away reg­u­larly – get into the sav­ings habit by putting away a small amount that you won’t miss too much each week/month, then in­crease it grad­u­ally to the max­i­mum you can af­ford.


Many peo­ple choose to pay for hol­i­days with credit cards, as it can be con­ve­nient and al­lows you to pay it off at a later date. But it’s im­por­tant to re­mem­ber that ul­ti­mately, you have to re­pay the debt. So, the less you put on credit the bet­ter. Not only will it make it less painful when it comes to re­pay­ments, it will also help en­sure that you don’t dam­age your credit score by bit­ing off more than you can chew.


Re­mem­ber a hol­i­day is a luxury, not a ne­ces­sity. Over­stretch­ing your­self on credit to pay for a trip can leave you strug­gling to buy es­sen­tials, or you could be floored by an un­ex­pected bill on your re­turn. Be re­al­is­tic about your bud­get and what you can af­ford.


Be­fore putting your next big hol­i­day on credit, con­sider how you’ll pay it off. If you’re look­ing to fund it us­ing a credit card, make sure you’ll be able to pay off any bal­ances in a timely man­ner to avoid pay­ing over the odds in in­ter­est. Or worse, get­ting be­hind with re­pay­ments and dam­ag­ing your credit score.


If you need to ap­ply for a new card to fund your hol­i­day, be care­ful not to make mul­ti­ple credit ap­pli­ca­tions in quick suc­ces­sion. Why? Be­cause many len­ders view mul­ti­ple credit ap­pli­ca­tions within a short pe­riod of time as a red flag, as it sug­gests you may be des­per­ate to get your hands on credit. If you’re con­sid­er­ing ap­ply­ing for a credit card, sign up to Nod­dle at Nod­dle.co.uk and use the free card matcher tool to see which cards you may be el­i­gi­ble for be­fore mak­ing an ap­pli­ca­tion.


If you are us­ing credit to fi­nance your sum­mer trip, make sure you tread cau­tiously and don’t spend too much of the credit limit avail­able on a card. If you’re un­able to man­age your re­pay­ments and can’t show you’re bring­ing down the bal­ance, it could sig­nal to len­ders that your spend­ing has got out of con­trol or you are ex­pe­ri­enc­ing fi­nan­cial dif­fi­culty.

By reg­u­larly check­ing your credit re­port you can keep an eye on all your fi­nan­cial com­mit­ments which will help to en­sure you stay in con­trol of your fi­nances.


In the last few years, the UK pound has lost some of its value com­pared to for­eign cur­ren­cies such as the euro and the US dol­lar. This means you will be pay­ing more to travel abroad and costs in re­sorts will be more ex­pen­sive too. This will in­crease the like­li­hood you may have to use credit to af­ford the break. Would it be worth con­sid­er­ing a “stay­ca­tion” and de­creas­ing your costs?

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