Holidaymakers should use payday loans wisely

If you're travelling abroad on holiday it may well be cheaper to arrive with ready cash than rely on using your credit or debit cards, according to a survey from uSwitch which highlights the impact of hidden costs and supplementary charges which are imposed upon holidaymakers when they use their cards on foreign shores.

The new figures reveal that loading fees, transaction fees, cash withdrawal fees and similar impositions combine to cost the nation's travellers around £607 million on top of their basic purchase outlays which is food for thought for payday loans customers who may find it cheaper to convert their holiday spending money into their destination's currency before setting out on their big trips.

uSwitch head of personal finance, Nick White, greeted the figure by commenting: "Holiday spending can be difficult enough to budget for at the best of times, without the bill creeping up by way of these hidden charges.

"As a nation we now prefer to pay with our plastic rather than use cash. Consequently, when we go abroad, most of us will not give it a second thought when taking out a credit or debit card to pay the bill.

"However, at the very least consumers should make sure that they are fully aware of the additional charges involved when they use their card overseas, so that they are prepared when these unwelcome fees appear on their statement."

These findings add to the wider debate over credit card and bank charges imposed on UK cardholders, which recently saw the OTF cap such penalties at £12. There are few such heavy one-off charges when using a card overseas but charges tacked onto individual transactions can mount up critically.

Loading fees entail a 2.75 per cent charge applied to each credit and debit card transaction made overseas, while transaction fees apply primarily to debit card deals and involve an additional 1.5 per cent charge imposed by the card issuer. In addition, one of the heftiest charges to be aware of when making transactions abroad is known as "dynamic currency conversion". This is when retailers convert the price of goods due to be bought using their own currency into British pounds, often entailing a fee of around four per cent.

Payday loans are an ideal option for the holidaymaker who needs some short-term cash as they come in manageable amounts and are repaid when your next pay packet comes through – thus taking a weight off your mind during what should be a blissful respite from the various rigours of everyday life.

To make the most of your payday loan, and to ensure that you do not pile up your longer-term debts by making too many credit card transactions with expensive extra charges, it may be advisable to make transactions in cash as much as possible when abroad. This has the added benefit of ensuring that you can manage your expenditure better too – and by offering short term cash of between £80 and £1000, reputable companies such as My Payday Loan provide a service which is designed to be as uncomplicated, efficient and straightforward as possible.