By simply avoiding holiday spending traps, families will be able to save as much as 100 pounds this summer. A wide range of excess fees can be due to shopping and meal out during a trip abroad. The total amount varies depending on the type of financial medium you use such as cash, debit, or credit card. As you know, different banks impose different charges to each type of financial medium.
If you are going to use your debit card for small value purchase, then a transaction fee of 1.5 pounds can be charged regardless of the total amount you spent. In other words, if you are going to use the card issued by your bank, then the price of what you purchased may actually doubled.
The price comparison service uSwicth.com published a research stating that this year British holidaymakers end up paying a total price of 320 million pounds for using their credit cards. Financial expert at uSwitch.com, Michael Ossei further said that family holidays can actually cost you more than you think especially if you spend your family holiday on the month of July and August.
As a result of weakening pound, the trips abroad cost you more than you actually think. Hence, it is essential for holidaymakers to ensure that they are not using the wrong cards. Andrew Hagger from Moneycomms said that the mind-bogging selection of cards and corresponding charges cause the people to spend more than their limits, especially during family holidays. People don’t realise it, not until they went home and receive their bank statement.
If you withdraw money overseas, an extra fee of 3% can be charged on you. If you are going to withdraw on Euro, then the charge can go as higher as 6 pounds for every 100 pounds withdrawal. Hence, you should avoid making overseas withdrawal unless it’s badly needed.