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Brits 'getting into debt for holidays'

By Sarah Engle, Tue 3 Aug 2010 - Published in Loans

More than two million people in the UK are willing to get into debt to go on holiday this year, new research has suggested.

A survey conducted by insolvency trade body R3 found that up to 2,329,500 holidaymakers have borrowed an average of £1,130 to fund their annual break.

The organisation also pointed out that the average borrower will spend seven months paying this sum back.

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."

She also called on holidaymakers to resist the temptation to spend more than they earn, as a record level of personal insolvency was seen in the UK over the first quarter of 2010 and this appears to be rising.

Santander Cards recently claimed that Brits will waste £49 million on foreign exchange fees when on holiday this year, as 57 per cent will use a credit or debit card to cover their spending when abroad.