LONDON, England – Vacationing Britons overspent by more than GBP5.5 billion whilst on their holidays this summer, setting themselves up for months of repayments and cost-cutting, according to new research by Credit Confidential.
Six in ten (59%) holidaying Brits broke their spending budget with an average overspend of GBP237.09 on their pre-planned allowance. These ‘Holi-debters’ will be feeling the effects of their frivolity throughout the autumn with over a third (36%) set to be repaying their holiday spending for over two months. An unlucky two million will take over four months to pay back their overspend, with one in twenty (5%) already thinking ahead by planning to spend less on Christmas presents this year.
Against a backdrop of soaring energy prices, Brits have traded winter warmth for summer sun with one in ten (11%) who busted their holiday budget forced to cut down on essentials, including utility bills, to pay off their debts. And almost one in ten (10%) overspenders will risk reversing the relaxing effects of their time off by working extra hours.
Paul Lewis, Vice-President of Credit Confidential, says: “The hangover from holiday overspend looks set to stay with us in the run-up to Christmas, with millions of us having to make changes to our budgeting plans in order to pay off these unexpected debts.”
Even holidays seen as a ‘cheap’ option became summer budget busters with Staycations costing Britons nearly GBP2 billion more than we bargained for.
Despite their best efforts, it seems that once in ‘holiday mode’ Brits’ control over their purse strings loosens significantly; over a third (34%) of overspenders decided to forget their finances because they didn’t want to restrict themselves while relaxing, while one in six (17%) believe overspending is a part of the holiday experience anyway.
Credit Confidential is advising holiday-makers to manage repayments efficiently to make sure there is no long-standing damage to their finances.
Paul Lewis, Vice President of Credit Confidential, says, “Summer holidays are a great opportunity to loosen up and have some fun, but overspending can cause a holiday hangover that no-one wants to endure. It’s important to try to stick to your budget and, if you do overspend, to try to get back into the black as soon as possible to avoid storing up problems for the future.”