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The 16m Brits heading abroad this summer could be facing £335m in credit card charges if they don't plan their spending wisely.

A report by moneysupermarket found UK holidaymakers will spend £8 billion over the summer but opting to use the convenience of credit cards could land them paying on typically 2.75% extra in charges.

Robert Kenley, head of credit cards at moneysupermarket, said: 'Spending on plastic is a popular and convenient choice for Brits abroad. But if you don't use the "right" card in the right way the costs can far outweigh the benefits.

'Even consumers savvy enough to be aware of loading fees and ATM charges also need to bear in mind the downside of dynamic currency conversion.

'Before setting off it's worth taking the time to ensure the credit card in your holiday wallet is not going to subject you to any unnecessary fees and charges.'

Mr Kenley went on to give some tips to help travellers being stung by charges.

Possible pitfalls to watch out for include the foreign currency charge usually around 2.75% that most card providers charge for purchases and cash withdrawn abroad.

When withdrawing cash with a credit card, there are several charges that people should be aware of.

Using cash machines could result in a charge of £2.50 or 2.5% -whichever is greater - and higher interest is charged on cash withdrawals.

Holidaymakers should also remember that interest free introductory offers rarely cover cash taken from ATMs and interest is often charged from the moment the transaction is made unlike the interest on purchases.


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