IVA

More people in the UK may have to seek debt management solutions as new research reveals that 10 million UK adults would end up in debt this year in order to travel abroad.

A recent research from Bright Grey shows that about 32% of adults who travelled this year are getting into debt to fund their summer holiday. The study further shows that ten million holidaymakers will use credit cards, travel agent payment plans or loans from friends and family to pay for their break.

More than half of those borrowing money in order to go on holiday do not have the money to repay their debtors immediately and one in ten take in excess of two months to repay this holiday debt.

Protection specialist Bright Grey says this could add over £100 to their holiday costs for each month it takes to repay the balance if they have used their credit cards.

A lot of people use credit to pay for holidays, and there is nothing wrong with this provided the people realize how much they are borrowing and if they have the resources to repay the debt. 

“Planning ahead for the future financially can help avoid using expensive emergency measures to cover them for the short-term and also mean that everyone can enjoy the sun without the grey cloud of debt hanging over their heads.”

Ask most debt management firms and they will advise that holidaymakers should avoid getting into debt if they are not sure of their ability to repay. It is important to note that interest will build up on most kinds of debt, and the sooner it is repaid the less likely they are to get into trouble.

The average UK holiday amounts to a whopping £1,200 so a summer holiday may in fact be followed by a considerable period of financial stress and worry.

A previous study from Aviva has revealed that people with high self-esteem are better able to exercise control over their finances. So hopefully even if a holiday is likely to cause debt it need not spiral out of control providing people seek professional IVA and debt advice well on time.