Peter Dean’s Holiday Debt Advice
Holidays are often the best time of the year. It’s a rare chance for us to escape the daily routine and relax, often by the pool or the sea. Over the years though, holidays have become more and more commercialised, which in turn means that every year people spend more and more on trips they can’t afford, thinking that they are getting a ‘good deal’. All this simply means an increase in the number of people that end up in debt, some of which never climb out of the hole they get themselves into! We all know how easy it is to overspend, so here’s some simple debt advice from yourdebtexpert.com on how to avoid getting into financial difficulties with your annual holiday
We all dream of having a fantastic Holiday, getting away after the long months of winter (or rainy summers) to somewhere sunny and warm. But sometimes this just isn’t possible. If you really want to have a holiday search about for deal. With lots of competition and school holidays all being at slightly different times, there are regularly good deals on offer, if you are prepared to not be too fussy about where you go. The most imporant thing though, is to set a budget for everything. A little realism might be the difference between you getting that much desired holiday and you burying yourself in debt you just can’t afford.
Whenever you spend money, be it on sunglasses or new clothes for the kids, make a note of what you spent and match it to your budget. If you overspent on something, balance it by spending less on something else. If you don’t keep track of your spending, you can easily find yourself going over budget and being out of pocket at the end of it. The figures show that almost a third of us will go on a holiday we can’t afford this year and will end up applying for help managing our debts, so make sure that you don’t end up being one of the statistics.
Avoid using credit
If you find yourself short of money as you get closer to a holiday, it’s very tempting to start using the credit cards, or even worse, payday loans. With credit cards, the bill will hit later in the month with added interest that’s been charged since you last payed it. With payday loans, the standard interest you are charged can be substantial (often a quarter of what you borrowed) and if you miss the repayment date, interest accrues at around 1% a day of what you borrowed, meaning your debt can increase dramatically in a short space of time. So in short, using credit will almost always cost you more. The best policy is to avoid using credit altogether when it comes to holidays, or you may find your debt hangover lasts longer than your holiday did!
There are lots of different ways to stay out of debt when it comes to holidays whilst still having a brilliant time. The most important thing to remember is that despite all the advertising and pressure to splash out on ‘low cost’ and ‘discounted’ holidays, you don’t need to overspend to have a great trip. Follow the tips above and you’ll be on track for a stress free holiday.