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Choose credit card wisely, holidaymakers warned

Choose credit card wisely, holidaymakers warned

• Pay off those credit cards with a remortgage or loan

 

Consumers have been advised to choose a credit card carefully before booking their summer holidays.

Comparison site uSwitch.com has stated that if a plastic loan is chosen offering 0% interest on purchases, Brits could save a total of £859 million in interest repayments.

And buying a holiday on a credit card means that section 75 cover will provided if the company goes bust, the website said, which is not the case if the trip has been paid for on a debit card.

If holidaymakers could find that choosing the wrong credit card is a "costly mistake", Simeon Linstead, head of personal finance at uSwitch.com, remarked.

He commented: "It is possible for people to reduce the amount they will pay in fees, or avoid paying them altogether, if they take a little time to research the credit card market before going away and make sure that they are packing the right plastic."

An increasing number of Brits are choosing to use prepay cards to control their spending while abroad, Virgin Money claimed recently.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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