If you’ve got a holiday coming up, you’ll be feeling excited, relieved to be having a break and looking forward to seeing some sunshine or maybe even some snow! But as many of you will know there is also a lot of planning and preparation involved with going on holiday – packing, checking your passports are in date, arranging travel insurance and of course, organising your travel money.
Knowing the best way to pay for things abroad can be a bit of a minefield. There are so many methods and options available to us these days, it can be hard to know where to start!
Here are our top tips on how to get the most from your travel money and the pitfalls to avoid.
Most of us know we’re going on holiday well in advance, so as soon as you’ve booked your holiday, start thinking about your travel money in advance, rather than leaving it to the last minute. This will give you time to shop around for the best exchange rate, order currency on-line and get it delivered. Rates are usually much better if you order in advance too.
If you’re planning to pay for your holiday on credit, make sure you do your research before you apply. Try looking for the credit cards which offer you the best rates and the absolute minimal charges for using your card abroad. Some cards charge high fees so it’s best to do your research in advance by looking online or calling your bank beforehand to make sure you’re clear on the charges. The other benefit is that you can let them know the dates you’re going to be abroad. They can then make sure any card payments you make while abroad don’t get flagged as suspicious.
Avoid Debit Cards
Debit cards can be the worst way of spending money abroad. You can be charged flat fees for using your cards on top of purchases and ATM withdrawals. If you do make withdrawals while abroad, it’s best to take out what you need in one go as with most debit cards you get charged every time you make a withdrawal. Again, check with your bank to find out exactly what the charges will be with your particular card.
Prepaid cards are a great way to spend money overseas, providing you choose a card with a good exchange rate and zero fees. They effectively act like a debit card but without all the bank charges, and are much safer and secure than carrying large amounts of cash. Money Saving Expert provides an independent analysis on the best cards available on the market right now, depending on your currency and amount you want to load on to the card. Prepaid cards can take a few days to arrive though, so you’ll need to be organised and order them in advance to get the best ones.
If you’d like to book a holiday and need a little extra to top up your holiday spending pot, you can visit the Nextcredit website to find out more about the short term loans available.
Amount of Credit: £300. Term: 91 Days. Interest: £155.35. 3 Monthly Payments: £152.63. Total Repayable: £455.35. Interest Rate: 292% pa (fixed). Representative: 1264% APR
Warning: Late repayment can cause you serious money problems. For help go to https://www.moneyadviceservice.org.uk