Thursday 24th of February 2011
Individual voluntary arrangement answers may soon be sought by those using credit cards to fund their holidays, after one website warned against putting large purchases on plastic.
Justin Modray, from candidmoney.com, said that people should only use credit cards for big purchases if they can afford to pay the balance off - in its entirety - soon after.
Many people may be tempted to put the full cost of their summer getaway on a credit card by the extra protection offered by such cash alternatives, but Mr Modray still warned they are "an expensive way to borrow money".
His comments follow research from Travelex which showed that more than a quarter of Brits (26 per cent) plan to book their summer break with a credit card.
Some 11 per cent admitted to having already funded their summer holiday this year with a credit card.
The figures show an increase of almost five million more people using credit cards to pay for holidays when compared to 2010.
By Rachel Powell
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Loans and credit cards 'are useful for some households'
