Beaches and borrowing: 10% of UK adults ‘putting summer 2025 holiday on credit'
Meanwhile, 7% are using credit to partly fund their summer getaway.
Some 2% of people said they are still paying off their 2024 summer break. A further 2% did not borrow for last year's trip but wished they had.
People in London are the most likely to use credit to entirely fund their 2025 summer holidays, the research indicates, with 17% planning to do so, compared with just 4% in Wales.
Northern Ireland (14%) followed closely behind London, while 10% of people in Scotland, the Midlands and southern England said they will use credit to pay entirely for their holiday. Some 7% of people in northern England will put their summer break on credit, the research indicated.
Gen-Z adults aged 18 to 24 are the most likely age group to be putting their 2025 summer holiday on credit, with 14% planning to fund their trip by borrowing, according to the survey of more than 2,100 people across the UK in June, carried out by YouGov.
Some types of credit may offer certain protections if something goes wrong. For example, people paying by credit card may find they can claw money back using Section 75 of the Consumer Credit Act, if they do not get the service they were expecting, depending on the circumstances.
Section 75 allows people to raise a claim with their bank or lender for a breach of contract or misrepresentation by the supplier.
Madhu Kejriwal, chief executive of TransUnion in the UK and Europe, said: 'These findings highlight the growing role of short-term credit in making holiday plans a reality.
'Clearly, responsible credit use can help consumers to afford or spread the cost of life moments, like holidays.
'However, consumers should be aware of the risks of longer-term financial pressure and ensure they only make credit arrangements than they can afford to repay.'
Here are some suggestions from TransUnion for holidaymakers using credit:
1. Read the credit agreement carefully before booking a holiday.
Check the terms and conditions of your credit agreement or buy now, pay later loan thoroughly, including repayment deadlines and any late payment fees. Missed or late payments, even on small amounts, may be reported to credit reference agencies and negatively impact a credit report, potentially affecting the ability to borrow in future.
2. Keep an eye on all credit purchases.
Credit for flights, accommodation, and extras can quickly add up when planning a holiday. Keep a clear record of how much credit has been taken out and set reminders or enable automatic payments to avoid missed repayments and additional fees.
3. Monitor credit reports.
This can help people to understand their financial standing before and after a holiday. Credit reports can often be checked for free.
4. Do not ignore bills if you are struggling.
Contact the lender for support or seek free support from charities such as StepChange Debt Charity, or National Debtline which is run by the Money Advice Trust.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
2 days ago
- Reuters
UK short-term inflation expectations rise, Citi and YouGov say
LONDON, July 25 (Reuters) - The British public's inflation expectations for the next 12 months rose in July and remained high over the longer term despite a slight dip from June, according to a survey published on Friday by bank Citi and opinion poll firm YouGov. Expectations for inflation over the coming year edged up to 4% from June's reading of 3.9%, the survey showed. Expectations for 5-10 years ahead fell to 4.2%, down from June's 4.3% but only back to a level they touched in May. Citi economist Callum McLaren-Stewart said the stubbornly high longer-term expectations were likely to add to concerns among some Bank of England interest rate-setters. "We infer little in the way of dovish signal from this month's Citi/YouGov survey and think this data series will continue to lean hawkish in the view of the MPC," McLaren-Stewart said. The BoE is widely expected to cut rates on August 7 as some Monetary Policy Committee members worry about a slowdown in the labour market. However, many analysts expect the BoE to continue with its gradual pace of cuts to borrowing costs due to inflation pressures lingering in Britain's economy. Official data published earlier this month showed British consumer price inflation rose to 3.6% in the 12 months to June from 3.4% in May - well above the BoE's 2% target.
The Sun
2 days ago
- The Sun
The FIVE reasons why I never use my debit card – I think they're pointless, you should ditch them too
OUR wallets are crammed with plastic - but there's one card I never use and is completely pointless. For many, a debit card is a go-to for everyday shopping. 1 But I think everyone should ditch it - and there's a much better option that will MAKE you money and offer more protection on your purchases. When it comes to being a savvy spender, debit cards are rubbish. Instead, I use a credit card and here I explain the five reasons why I think everyone else should make a switch too. Make use of a secret weapon in your wallet If you've ever bought a big-ticket item – perhaps a new sofa, a swanky TV, or even booked a holiday – and then had it go wrong? It's a nightmare scenario we all dread. And if you paid with your debit card, you might be in for a nasty surprise. While debit cards offer " chargeback", where your bank tries to recover your money from the retailer, it's not guaranteed. It's a voluntary agreement, not a legal right, so your bank can try - but there's no promise you'll get your money back. Now compare that to credit cards. If you spend over £100 and under £30,000, you're automatically covered by Section 75 of the Consumer Credit Act. Four methods you can use to clear debt This is consumer protection gold. It means your credit card company is equally liable with the retailer if something goes wrong. So, if your new sofa doesn't arrive, is faulty, or your holiday company goes bust, paying with a credit card gives you far better protection. You're missing out on loyalty points This one really grinds my gears. In a world where every click and every purchase is tracked, why aren't you getting something back for your loyalty? Every time you tap your debit card, you're throwing away free money - or in my case, free holidays. Every time I spend a quid on my British Airways Premium Plus American Express credit card, I'm racking up 1.5 Avios airmiles. If I'm booking a flight on that jumps to a whopping three Avios per £1 spent. Those points can go towards free flights, holiday bookings, cabin upgrades, and more – just for spending money I was going to spend anyway. American Express has credit cards for Nectar members too, giving shoppers two points for every £1 spent. If you want flexibility with how you use your points, American Express Reward, Gold, and Platinum cards let you earn one "membership" point for every £1 spent. This means you could exchange some of these points for airmiles with airlines like British Airways, Iberia, Qatar, Emirates, and Virgin Atlantic. Then redeem more for discounts on hotel bookings with Hilton, Marriott, and Radisson. Plus, Amex allows you to convert points to help lower your credit card bill, with 1,000 points worth £4.50. My debit card gives me nothing - no perks, no points, no rewards so why spend money without getting something back? Free cash when you spend Most high street banks and their debit cards are notoriously tight-fisted when it comes to cashback. Some bank accounts with monthly fees or challenger banks like Chase do offer up to 1% cashback, but if you're like the majority and have a standard fee-free high street current account, your debit card won't give you any instant savings. But with my credit card, it's a completely different story. My American Express app is packed with offers. I just tap to add them to my card, and I get instant savings on things like my weekly shop or streaming services. Right now, I'm getting 15% back on my Disney+ subscription every month – free money for something I'd be paying for anyway, automatically applied. Plus, if you're an Amazon Prime fan like me, my fee-free Amazon Barclaycard gives me 1% cashback on all my online orders. The best part? Cashback doubles during events like Prime Day, letting me earn even more while I shop. If cashback is your only concern, the American Express Cashback Everyday Credit Card is a great option for those expecting a high-spend period. It offers an impressive 5% cashback on purchases for the first five months (up to £125). After this introductory period, you can earn up to 1% cashback, but you'll need to spend over £10,000 annually to qualify for ongoing rewards. For those who might not meet the £10,000 annual spending threshold, the American Express Cashback Credit Card is another strong choice. It also offers 5% cashback for the first three months (up to £125), followed by 0.75% cashback on spending up to £10,000 per year and 1.25% above that. What is cashback? CASHBACK is a type of reward offered by banks, credit card providers, and retailers where customers receive a percentage of their spending back as cash. Essentially, it's a way to earn money while making purchases. For example, if your card offers 1% cashback and you spend £100, you'll earn £1 back. Cashback can be credited to your account, deducted from your balance, or saved up for future use, depending on the provider's terms. It's often offered on everyday purchases, such as groceries, fuel, or online shopping, and may be part of a promotional deal or an ongoing benefit of your account. However, remember to check the terms and conditions, as some transactions may not qualify for cashback rewards. By using cashback offers wisely, you can usually make your money go further on purchases you'd already be making. It does nothing for your credit score Building a good credit score is crucial. It's not just for big loans like mortgages - it affects everything from mobile phone contracts to car finance. Using a debit card without an overdraft doesn't help your credit score because you're just spending your own money. But, using a credit card responsibly – that is, making sure you pay it off in full and on time every single month – is a fantastic way to prove you're a trustworthy borrower. It demonstrates financial discipline and builds a positive credit history. However, I must give you a big fat warning here... If you're not disciplined with money, credit cards can wreak havoc on your score and future borrowing capabilities. Miss payments, and you'll trash your ability to get a loan or mortgage for years. So, only use them if you can be trusted to clear your balance. How can I boost my credit score? A ROBUST credit score is a golden ticket to better deals. Andrew Hagger, founder of Moneycomms, said the most important move is to register to vote. This is because lenders need to check your identity and address to confirm you're not a fraudster. For Experian, being on the electoral register can yield you 50 points. Also, don't make too many credit applications as this can be a sign of financial distress. And if you already have a credit card or loan, never miss a payment. Kara Gammell, financial expert at MoneySupermarket, said: "A missed payment can negatively affect your rating." Renters who want to boost their credit score can also report their rent payments to three of the major credit reference agencies to prove they can pay their bills on time. CreditLadder introduced rent reporting to the UK for all tenants in 2017. Two out of five households rent, and CreditLadder can report those rent payments to all the main credit reference agencies, which can help you improve your credit history and score. They come with expensive borrowing costs An overdraft lets you spend or withdraw money with your debit card even if your balance is below £0. But overdrafts are one of the most expensive ways to borrow, with most banks charging a steep 39.9% APR. TotallyMoney found that one in five people go overdrawn by an average of £697 a day, quickly racking up interest. Credit cards, however, usually have much lower rates - between 18% and 24.9% APR, according to MoneySuperMarket. If you were to borrow £1,000 for a year on a credit card at 18% APR it would cost you around £180 in interest. Whereas, on a 39.9% APR overdraft, the same £1,000 would cost nearly £400. When it comes to borrowing small amounts, credit cards are the clear winner. Plus, you can even snag introductory 0% credit card deals, giving you a period to borrow completely interest-free. Just remember that these offers are usually tailored for managing existing debt or making planned, affordable purchases. They are not for spontaneous spending sprees unless you're completely debt-free otherwise and can pay it back within the interest-free period.
Telegraph
4 days ago
- Telegraph
Gen Z support for Trump collapses amid Epstein fallout
Young people have lost faith in Donald Trump, polling shows. The US president's approval rating among 18 to 29-year-olds fell from roughly even around the time of his inauguration in January to minus 40 by July, according to analysis of YouGov data by the pollster G Elliott Morris. Gen Z voters swung towards Mr Trump in last year's election, even though support for Republican candidates tends to lag among younger voters, but this has collapsed in the months since. Mr Trump is facing the biggest crisis of his second term over his handling of the Epstein files, with his administration refusing to make public all of its documents relating to Jeffrey Epstein, the paedophile financier, who died in 2019. By the US president's own account, he was friends with Epstein for about 15 years before they fell out in the early 2000s. The drop in support could be a hopeful sign for the Democrats, many of whom were panicked by Mr Trump's support among younger voters when he won last year's presidential election, almost equalling his opponent Kamala Harris for support among 18 to 29-year-olds. However, data appear to show that a drop in approval for Mr Trump is not necessarily translating to support for the Left-wing party, Axios reported. A separate poll for CBS News and YouGov published on Sunday showed 8 per cent of Democrats, 17 per cent of independents and 50 per cent of Republicans approved of Mr Trump's handling of the Epstein case. It also revealed widespread scepticism of his handling of the economy, with 36 per cent approving of his handling of inflation compared with almost two thirds against. Almost half believed Mr Trump's ' one big, beautiful bill ', which passed Congress last month, would hurt their family, compared with 25 per cent who believed it would help. The legislation extends tax cuts from the president's first term in 2017, but also cuts funding for Medicaid, which covers medical costs for low-income Americans, by trillions of dollars, despite Mr Trump's election pledge not to do so. However, the Democrats are hugely unpopular, failing to regroup following a series of shattering defeats in November's elections. Just 28 per cent had a favourable opinion of the party, according to a CNN poll conducted between July 10 and July 13, compared with 54 per cent who were unfavourable. This marks a small dip from shortly before Mr Trump's inauguration in January this year, when 33 per cent had a favourable opinion compared with 48 per cent who were unfavourable.
