Friday 11th of September 2009
British holidaymakers were charged a total £106 million last year to take out money abroad, a newspaper reveals, which could leave them requiring an IVA should plastic debt get too high.
This Is London notes that some of the biggest lenders including Lloyds TSB, Halifax and Virgin Money, charge more than £50 for every €1,000 taken out.
Once a family gets home, they could find themselves facing a hefty credit card bill, which could top up their debt even more.
Lenders such as Halifax also add daily interest for using cash machines, meaning their unsecured debt increases while they are away.
Britons who face large credit card balances may need to not only rein in expensive holidays, but also turn to IVA advice in order to clear plastic debt and any other financial vehicles they used to cover holiday costs, such as a personal loan.
"It’s hard to justify the charges that British travellers face on their credit cards," Ricky Bruce, a financial research specialist at Moneyfacts Group, tells the publication.
A recent poll from Saga showed that seven per cent of Britons over the age of 50 have five or more credit cards.
By Mark Waterman
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