Holidaymakers admit they will overspend on vacation

Consumers could find themselves in need of an IVA or other debt management products after the summer, as the majority admitted they will probably overspend during their vacation.

Figures from NS&I showed that 61 per cent of British holidaymakers said they usually blow their budget while on holiday.

What''s more, 26 per cent said they were shocked at how much money they had spent when they returned home and 20 per cent revealed they did not bother to assess their financial situation before they departed.

"There is no doubt that holidays and spending while abroad are costing Brits a lot more than many bargain for, but people need to think past simply enjoying themselves and to plan their finances so there are no nasty shocks when they get home and face the bills," Dax Harkins, senior savings strategist at NS&I, explained.

"Given the expense, it is great to see that a quarter of people do save in advance, but it is clear that more of us need to set money aside specifically for holidays or the holiday spirit will come back to earth with a bump on the return home."

Recently, Richard Brown, chief executive of Moneynet.co.uk, said that it was important people prioritised their debt and worked to pay off their most expensive borrowing first.