This year, as the summer holidays loom for many of us, nearly one third of us will be financing our traveling by increasing our debt.
A recent survey conducted by Bright Grey revealed that 32 per cent of those with holiday plans will be availing themselves of their credit cards or other deferred-payment plans such as payment plans offered by travel agencies, borrowing cash from friends or family, or even raiding their savings accounts or current accounts for the necessary funds.
In more distressing news, Bright Grey also found that nearly three in five of those who will be borrowing money to go on holiday will be giving themselves headaches once they get back home: 58 per cent of travelers planning on borrowing to finance their holidays do not have the cash to pay off their VISA cards once they get home.
Roger Edwards, a spokesperson for Bright Grey, urged consumers not to make poor financial decisions over the coming months, especially in light of the fact that totals in excess of £12bn have been racked up by people who feel they absolutely must take a holiday every year. He acknowledged the allure of going away on holiday but cautioned against coming home only to face “a financial holiday hangover” upon returning home and finding a distressing bank statement in the mail.
The average person planning to travel this holiday season will borrow an average of £1,200, the research survey found. In addition, 13 per cent of respondents said that, regardless if they could afford it or not, they simply had to go off on holiday every year. Additionally they also said that it was important for their neighbors to know they took an annual trip abroad.
One positive trend, however, was in the distances people were willing to travel this summer: the majority of traveling will be local. Only 10 per cent of prospective holiday goers plan on traveling long distances.