Paying Away
Spend time thinking about your holiday money – it's as important as planning where you're going, says finance guru Lynne Jones
A mix of cash, traveller's cheques and cards means you're covered for all eventualities when abroad.
While credit cards can be a safe and easy way to spend, the majority of credit and debit cards add a two or three per cent 'loading' fee to all purchases. So every time you buy a meal, pay a hotel bill or make a cash withdrawal you'll be paying for it.
Nationwide and the Post Office, however, offer credit cards without loading fees and Saga's card, for the over-50s, is also free from loading fees in Europe. These cards still charge a cash-advance fee for ATM withdrawals, meaning they are cheaper, but not free.
The only card that's entirely fee-free for oversees spending is the Nationwide FlexAccount debit card, which has neither a loading nor a cash-advance fee.
Shopping know-how
- Save money on holiday with a bit of savvy thinking. On a self-catering holiday, stock up at the supermarket or local market, and when eating out, avoid the tourist traps and go to the places the locals frequent.
- Think carefully about hiring a car as some holiday hot spots have cheap and efficient public transport.
- If you're going to use your mobile a lot, buy a SIM card locally, or see if your phone operator has any deals.
- Look online for discount vouchers for big attractions.
Don't rely entirely on plastic though, you'll also need foreign currency. Avoid buying it
at the airport or ferry terminal as you'll probably pay a two per cent commission. Shop around on the high street as companies such as the Post Office and Halifax offer commission-free currency.
Let your credit-card provider know that you are planning a trip abroad, as many are alert to suspicious foreign transactions and can sometimes block cards as a safety measure.
If you're going to a country where the US dollar is the currency then, if the exchange rate is in your favour, you may want to buy your currency in advance and hold on to it.
After the pound fell to its lowest level against the euro in April, Thomas Cook reckoned that with £2,000 being the average spend by a family of four on a week's European holiday, the 15 per cent fall could add an extra £300 to the bill. If you're booking last minute this year you could try countries out of the euro zone, such as Croatia, Bulgaria, Egypt or South Africa. And, if you've already booked a holiday within the euro zone, claw back some of your costs by seeing which deals or vouchers you can get before you go away.
Personal data
If we know who has our personal data and what it is used for, we can avoid being victims of fraud or identity theft. Reduce the risk by always checking bank statements to ensure transactions are all your own, and review your credit file regularly – it can help to catch loan applications that have been made in your name unbeknownst to you. Use a shredder to destroy confidential paperwork, and don't use the same password for different accounts. And don't leave personal details on social networking sites.
Q&A
Reader panellist Jaki Watkins is ex-directory. But last week she received an unsolicited marketing call. How is this possible?
Being ex-directory doesn't stop direct marketing calls. If you don't want to receive them you have to opt out by signing up to the Telephone Preference Service. The Privacy and Electronic Communications (EC Directive) Regulations 2003 says if you're registered with the TPS, marketing companies can't call you.
TPS is free, registration takes 28 days and it is administered by the DirectMarketing Association. Visit www.tpsonline.org.
uk/tps to register.