Credits cards 'should be used responsibly on holiday'

By Sarah Engle, Tue 20 Jul 2010 - Published in Credit Cards

Holidaymakers thinking of funding a break with a credit card should ensure they use the product responsibly, it has been suggested.

Research from price comparison website moneysupermarket.com claimed that more than five million Brits will cover the cost of their holiday this year with a credit card.

However, the report recommended that people doing this should make sure no foreign purchase fees apply to any purchases they make when overseas and said they should check that they are not being hit with adverse exchange rates when money is being taken out on cards.

Kevin Mountford, head of banking at moneysupermarket.com, commented: "The decision to borrow should never be taken lightly and consumers need to be careful that they don't fall into a debt trap - they should never spend more on their card than they can afford to pay back."

The expert said that credit card with a zero interest offer can be used to spread the cost of a vacation over a number of months, while some products give them cashback, club card points or air miles for their purchases.

Earlier this month, a survey by Bright Grey discovered that 32 per cent of people have paid for their holiday with borrowed money.

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