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Consumers funding holidays with debt
July 9, 2010
By Mark Warner

An increasing number of people in the UK are willingly going into debt to pay for a holiday, a recent study has indicated.

Recent research carried out by insurer Bright Grey revealed that one in three respondents intends to use debt to fund their trip this year.

It found that the average holidaymaker will need to borrow around £1,200, but 58 per cent said they would be unlikely to be in a position to repay this debt straight away.

Some 32 per cent of those polled said they will pay for their holiday by a credit card, travel agent payment plan or a loan from family and friends.

Furthermore, 13 per cent said they had to have a holiday no matter what their financial situation.

Roger Edwards, proposition director at Bright Grey, said consumers should be wary of getting into difficulty by determinedly standing by their holiday plans.

"Getting away on holiday can be a high point of the year for many people, however with one in three borrowing to pay for their getaway, it is important to make sure they don't end up with a financial holiday hangover on their return," he commented.

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