Holidaymakers Taking On Debt To Cover Travel Costs

Thu, 05 Aug 2010

More than 2 million Britons will borrow over £1,000 help fund their holiday plans this year, new research has revealed.

A survey conducted by insolvency trade body R3, found that holidaymakers will take on an average of £1,130 of debt to finance their travels and will spend an average of seven months repaying it.

Scottish holidaymakers are the most likely to take on debt for holiday costs, with 12 per cent saying they either had borrowed or intended to borrow money for this purpose in 2010, followed by 10 per cent of Londoners.

In comparison, just 3 per cent of holidaymakers in the North West, Yorkshire and Humberside and the West Midlands said they had or were prepared to borrow for holiday purposes.

Frances Coulson, Vice-President of R3, said: "That people are prepared to take on a substantial amount of debt for such a long period of time in order to afford a holiday is worrying, especially as these are still economically uncertain times."

" Personal insolvency hit record levels in the first quarter of this year and looks set to rise - so we’re urging people not to spend more than they earn."

Unsurprisingly, the research also found that young travellers (those aged between 16 and 24) the most likely to turn to borrowing, while those aged 65 and over are the least likely.

"The figures points to a clear generational split in attitudes to borrowing and debt," Coulson added.

"We must continue to promote the idea that saving, rather than borrowing, to pay for luxuries is the best way to avoid a life dogged by financial problems ."
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