Consumers 'risk debt by holidaying'
Published On 1 August 2007
Nearly 1.5 million Brits will risk a future of debt after the summer because they plan to head off on holiday without paying for last year's vacation, new research suggests.According to MoneyExpert.com, 1.4 million people in the UK are still in debt from last year's holiday and 926,000 took more than a year to pay off vacation borrowing.
On average, people take just under four months to pay off borrowing they accrue while away.
However, MoneyExpert.com believes that these figures highlight the spiralling debt problem that some consumers in the UK face. The site warned that increasing interest rates mean that people could struggle even more to pay off debt amassed on this year's holiday.
"Holidays are a time for getting away from it all but too many of us are just getting into debt and building up troubles for the future," explained Sean Gardner, chief executive of the site.
"With borrowing costs rising across the board there is real concern that too many people are trapped in a spiral of debt which ultimately threatens to overwhelm them."
Mr Gardner added that people with debt problems should consider switching debt to more competitive credit cards and possibly consolidating debts into a personal loan.
He concluded: "In some cases it could include taking out a secured loan if you are a homeowner."
