Pre-paid cards 'could be useful for holidaymakers'

By Marianne Straker, Thu 10 Jul 2008 - Published in Home Insurance

Tourists may find pre-paid credit cards can help them stick to their holiday budget, according to Virgin Money.

The group claims rising levels of debts and increasing living costs are likely to boost the popularity of the cards as they could help holidaymakers keep their spending under control.

At the moment people can choose from about 40 pre-pay cards but Virgin Money states that more will probably be released over the coming months.

Pre-paid cards are designed to allow people to spend and withdraw money overseas without worrying about getting themselves into debt.

Virgin Money spokesman Grant Bather stated: "They're a good discipline to get into to avoid the risk of the sun going to your head and burning up your bank balance on holiday."

However, holidaymakers have been warned to budget for the monthly fees some providers may include and to bear in mind the extra cost of handling and commission fee charges for overseas usage.

Elsewhere, a study by insurance.co.uk has found one in four UK babies under the age of six months has travelled overseas at least four times.

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