Expert debt views & facts
Summer fun may land Brits in debt
13 August2008
According to research released this month by Credit Expert, a summer holiday may land 2.5 million British consumers in debt.
Coming home to a backlog of work and a fading tan may be depressing, but credit card debts, overdrafts and mortgage arrears may be more serious consequences of over-spending this summer.
With the credit crunch now hitting families, according to Norwich and Peterborough Building Society, and increased energy prices causing concern for the Child Poverty Action Group, many consumers are doing all they can to stay out of debt.
While holidays remain popular – indeed, they are used to relieve the stress of the credit crunch, according to Abta – families are increasingly likely to head for the British seaside this summer, according to LV=, or to swap package deals for less expensive DIY trips, uSwitch said.
Fewer people are taking short city breaks as well, focusing instead on one main holiday, TravelSupermarket.com has said recently.
However, cutting back on long-haul trips or taking fewer breaks may still land many people in debt.
Many experts have recommended money-saving tips for summer breaks this year, from making sure holidaymakers have the correct insurance to keeping cash safe from thieves by using a prepaid credit card.
With the growing popularity of UK holidays – some of which involve a long drive – motoring finance has also been a hot topic. The Retail Motor Industry Federation urged drivers to prepare their vehicles for long trips to avoid costly accidents, while Dr Claire Halsey, on behalf of Admiral, has offered tips on safer driving with children.
However, even taking these steps may not fend off the threat of debt.
Some people may be finding mortgage repayments have increased and are now trying to manage arrears while loans to pay off other debts may be more difficult to find.
For those facing debt, the advice given by experts is to seek help. Debt counselling may be useful and a debt management plan can be put together by advisors.
If there is no alternative, choosing insolvency by agreeing an individual voluntary arrangement (IVA) or declaring bankruptcy may also be beneficial in the long run.
However, as Fool.co.uk`s head of personal finance David Kuo said this week, "help is only ever a mouse-click away".
Coming home to a backlog of work and a fading tan may be depressing, but credit card debts, overdrafts and mortgage arrears may be more serious consequences of over-spending this summer.
With the credit crunch now hitting families, according to Norwich and Peterborough Building Society, and increased energy prices causing concern for the Child Poverty Action Group, many consumers are doing all they can to stay out of debt.
While holidays remain popular – indeed, they are used to relieve the stress of the credit crunch, according to Abta – families are increasingly likely to head for the British seaside this summer, according to LV=, or to swap package deals for less expensive DIY trips, uSwitch said.
Fewer people are taking short city breaks as well, focusing instead on one main holiday, TravelSupermarket.com has said recently.
However, cutting back on long-haul trips or taking fewer breaks may still land many people in debt.
Many experts have recommended money-saving tips for summer breaks this year, from making sure holidaymakers have the correct insurance to keeping cash safe from thieves by using a prepaid credit card.
With the growing popularity of UK holidays – some of which involve a long drive – motoring finance has also been a hot topic. The Retail Motor Industry Federation urged drivers to prepare their vehicles for long trips to avoid costly accidents, while Dr Claire Halsey, on behalf of Admiral, has offered tips on safer driving with children.
However, even taking these steps may not fend off the threat of debt.
Some people may be finding mortgage repayments have increased and are now trying to manage arrears while loans to pay off other debts may be more difficult to find.
For those facing debt, the advice given by experts is to seek help. Debt counselling may be useful and a debt management plan can be put together by advisors.
If there is no alternative, choosing insolvency by agreeing an individual voluntary arrangement (IVA) or declaring bankruptcy may also be beneficial in the long run.
However, as Fool.co.uk`s head of personal finance David Kuo said this week, "help is only ever a mouse-click away".
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