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Two-thirds of holidaymakers pay for breaks using savings

Two-thirds of holidaymakers pay for breaks using savings
14 Jan 2014

Nearly two in three holidaymakers will use their savings to pay for their vacation, according to a new survey by the Financial Services Compensation Scheme (FSCS).

In a tough economic climate, where interest rates remain at a record low, 51% of respondents said they had paid for a holiday in full using their savings, while a further 14% used such funds to pay for part of their trip. This total figure of 65% rose to 75% for those aged between 24 and 44. 

The FSCS stated that at a time when the Bank of England base rate remains at its historic low of 0.5%, this is promising news, but it is also equally important for holidaymakers to remain responsible with their finances. 

When it came to budgeting, only 66 per cent of respondents set financial plans for their holiday, with just a fifth of these individuals sticking to it. As a result, more than a third of the sample stated that they had overspent on their trip, while five per cent were planning to completely fund their holiday using a credit card or loan. 

According to the Express and Star, FSCS chief executive Mark Neale said: 'The financial aspects of going on holiday can be stressful as well as time-consuming.

'It is important that holidaymakers are aware that regardless of how they save up or pay for their holiday, any savings with a UK-authorised bank, building society or credit union are FSCS protected. This will no doubt reassure holidaymakers and ensure at least this part of their holiday remains stress-free.'

The results are based on a sample of 2,000 adults across the UK. ADNFCR-408-ID-801682091-ADNFCR

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