| t cards have become a prominent part of | | | | to overspend can be high. It can be easy to think |
| modern day life with British consumers using them | | | | that you are getting a bargain on all your |
| to pay from everything from the household bills | | | | purchases because the transactions are being |
| to purchasing a new car. More people have also | | | | completed in a foreign currency. Research by |
| started to use them abroad on their holidays as a | | | | Travelex.co.uk found that people had been prone |
| convenient way to pay for goods and services or | | | | to overspending on their credit cards in recent |
| as a means of withdrawing cash. | | | | years and wanted to ensure they stayed within |
| However using a credit card in this way does | | | | their budgets this year, so were taking more cash |
| have some drawbacks, which some people have | | | | with them. Other people said that they wanted to |
| found out about the hard way. According to | | | | reduce the amount they were spending on credit |
| Nationwide Building Society, Brits abroad were | | | | card fees and therefore decided to take cash to |
| charged over £650 million pounds in fees | | | | avoid them as much as possible. For Travelex this |
| for foreign currency usage during 2007. Every | | | | is good news as more people are changing |
| time people were using their credit cards abroad | | | | currency before they fly which means more |
| they were being charged around 2.75% on top of | | | | business for them. |
| their purchases. Even worse was the charge for | | | | However there are some alternatives to credit |
| withdrawing cash a broad which topped around | | | | cards if people do not want to take more cash. |
| three percent. In addition to this there may have | | | | Taking large amounts of cash can become more |
| been added a withdrawal charge making the total | | | | problematic if you become a victim of theft whilst |
| amount very expensive indeed. | | | | on holiday. If cards get stolen then can be |
| However this year it seems that holiday makers | | | | cancelled easy enough, but once cash has gone it |
| have learnt their lesson and are more inclined to | | | | is very difficult to get it back. In order to bridge |
| take out cash before travel to take with them | | | | the gap Abbey bank introduced a new Zero card |
| rather than withdrawing cash abroad. Recent | | | | which does not incur any foreign exchange fees |
| statistics estimate that this year the credit card | | | | or fees for withdrawing money as a cash |
| will be shunned and more than one billion pounds | | | | advance. Debit cards can also be a viable |
| extra will be taken abroad to avoid credit card | | | | alternative with some cards also not charging for |
| fees. On average British holiday makers are taking | | | | cash withdrawals. A third alternative is to |
| around two hundred pounds more in cash with | | | | purchase a prepaid card but be warned there are |
| them on their travels than they did in 2007. | | | | often fees attached to this; however they may |
| Another reason for taking cash rather than the | | | | be lower that the fees your credit card provider |
| cards is it can help people to stay within their | | | | is charging. |
| budget. When you are on holiday the temptation | | | | |