Over 10 million people rack up debt just to get away this summer
9 July 2010
- Britons borrow over £12bn to fund their summer holidays*
- Average spend for main summer holiday is over £1,200
- One in 10 take in excess of two months to pay off holiday debts
Over 10 million UK adults going away this year (32%) are racking up debt in order to fund this year’s summer holiday, a new survey by Bright Grey has found**. The research from the protection specialist reveals millions will pay for this year’s holiday by using their credit card, a travel agent payment plan or borrowing cash from friends or family.
Of those borrowing to fund their summer break, over half (58%) do not have the money readily available to repay their debtors straight away, meaning they could face additional interest payments. For credit card borrowers alone this could add over £100 to their holiday costs for each month it takes to repay the balance***.
When questioned as to why they borrowed money to pay for their holiday, nearly one in seven people (13%) said that they have to have a holiday every year, irrespective of their current financial situation. Interestingly, a seventh (13%) of socially conscious respondents said they had to be seen by their friends to be taking a holiday every year.
The study also revealed that more people value the need to go away over their job security, when questioned as to what issue was more important to them. However, the top two priorities for UK adults this year are personal health, followed by financial security.
Roger Edwards, proposition director at Bright Grey said:
“Getting away on holiday can be a high point of the year for many people, however with one in three borrowing to pay for their getaway, it is important to make sure they don’t end up with a financial holiday hangover on their return. Planning ahead for the future financially can help avoid using expensive emergency measures to cover them for the short-term and also mean that everyone can enjoy the sun without the grey cloud of debt hanging over their heads.”
- Ends -
Editor’s Notes:
Holiday facts:
- The average trip for a Briton overseas is under ten days****
- It takes 4.3 months for the average holiday to be planned
- Nearly one fifth of UK adults will be going on a bed and breakfast holiday this year, while nearly one sixth prefer a tailor-made trip
- Just under another third of UK adults are planning to take their main summer holiday in the UK itself
- Less than one in ten Britons are currently considering heading outside of Europe this summer
For further information please contact:
tel: 0131 247 1677
tel: 020 7294 3623
tel: 0207294 3674
*Research shows 10.045m (63%) adults are taking a summer holiday, of which 33% will borrow an average £1,231.67 on a credit card, from a friend or family member, or via a payment plan with a travel agent.
** Opinion Matters carried out an online poll of 1499 British adults aged 18+ from Friday 21st May 2010 to Tuesday 1st June 2010. Results have been weighted to nationally representative criteria. Population figures from ONS show there are 48.315m adults in the UK – research shows with 63% (30.438) will be taking a summer holiday.
*** The average cost of a holiday is £1,231.67 - given that the average credit card APR is currently 18.7 per cent***, this means that for those holidaymakers taking a month to pay off their holiday credit card debt, they are paying over £100 extra. Source: http://citywire.co.uk/money/the-best-credit-card-deals-for-0-transfers/a406012
**** According to the most recent Travel Trends document available from ONS: http://www.statistics.gov.uk/downloads/theme_transport/Travel_Trends_2008.pdf
Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Provident – UK protection market
- Royal London 360° – offshore investment markets
- RLAM – fund management
- RLAS – life and pensions administration
- Fundsdirect / Ascentric – funds supermarket; Wrap platform
Royal London also distributes life and pensions products through Santander’s UK branch networks.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £39.1 billion. Group businesses serve around 3.4 million customers and employ 2,890 people. Figures quoted are as at 31 March 2010.