According to a recent survey, nearly one in three British holidaymakers are unsure how much they are being charged for using their credit card abroad. It goes without saying they may well be saddled with unexpected debt problems once they come back home.
The survey shows that Brits will spend around £3 billion on credit cards outside of the UK from now until the end of the year leading to charges of about £62 million, a fact that 42 per cent of those questioned were completely unaware of.
According to Az Alibhai, Head of Cards for the Post Office, who conducted the survey, ‘this could cause unnecessary problems after a holiday. ’
"Holidays should be a time to relax and enjoy yourself, but these extra pounds paid every time you make a purchase could result in extra stress when the credit card bill arrives, " he said.
Credit card users need to be aware that their service providers can apply unwanted fees in three instances. When you withdraw cash, you can be charged at more than one per cent for every transaction. Then again, a minimum fee may be applied to other spends.
Finally, there are other hidden costs that can be included, for example, a loading fee that is charged in addition to the exchange rate at the time a transaction is made. Needless to say all this will cause immense misery for those who use their card abroad.
Credit card is an unsecured debt that invites very high interest rates, even more than what the banks charge for their unsecured loans. Those burdened with credit card or other unsecured debts should immediately seek free debt advice to understand about the debt solutions including IVA and Debt Management Plan and take steps to help them regain control over their finances.
If you are unable to pay your unsecured debts such as credit cards, store cards etc. , you should immediately seek debt advice to understand how you can deal with your financial burden. Debt advice is usually offered free of cost and you can talk to the debt advisors to understand more about IVA, the debt management plan and debt solutions available.
ClearStart aims to help solve debt problems rather than allowing them to perpetuate. Recommendations are based on the individual situation and all advice is free. The website http://www.clearstart.co.uk offers practical advice for people and there is a ClearStart debt helpline available on 0800 093 92 12.