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Product category: Banking / credit / debt
News Release from: Alliance & Leicester | Subject: Banking
Edited by the Insidemoneytalk Editorial Team on 09 July 2007

Brits bury head in the sand when it
comes to shelling out for holidays, says
Alliance and Leicester

One in ten jet off on the next holiday before paying for the last.

One in four took a year to pay off their last main holiday Britain is a holiday-loving nation with most of us going on at least two trips a year - but many of us are taking a 'buy now - worry later' approach

Research from Alliance and Leicester Savings* reveals 4.2 million Britons1 (10 per cent) do not have any qualms about jetting off on their next holiday before actually paying for the last.

Men are twice as guilty as women; 12 per cent compared to 6 per cent.

More than one in five (22%) spent as long as a year paying off their last main holiday - and nearly 900,0002 people (2 per cent of respondents) still haven't paid the final bill.

The Alliance and Leicester Savings holiday report, also revealed that 44 per cent of people - 19.4 million3 - do not save the full amount needed to go on their holiday, yet jet off anyway.

This spendthrift approach is likely to burn a bigger hole in the pockets of Britain's serial holidaymakers - the research found that more than one in ten people (11 per cent) take an indulgent five or more holidays per year, including weekends away.

Older travellers, those over 55, are most likely to treat themselves to over five breaks per year (13 per cent).

Ross Dalzell, Manager for Savings at Alliance and Leicester said: "We all like to have a holiday (or three) to look forward to each year - for many booking another one is the perfect way to beat post-holiday blues.

With holidays just a mouse-click away, the temptation to get away from it all has never been greater." As well as admitting to not saving up before going on holiday, the research from Alliance and Leicester Savings also revealed a tendency for overspending among Britons once on holiday.

More than a quarter of people surveyed (27 per cent) admitted to spending more than they intended to on their last holiday with a massive 1 million4 (9% of those who overspent) confessing to blowing the budget by more than £500 - and some by as much as £1,000.

While a bit of overspending is par for the course, worryingly, Alliance and Leicester found that a fifth (21%) of those who decide to go all out, put the extra cash on a credit card, which they admitted to having no way of paying off straightaway.

Another fifth (20%) said they had to put off purchases and really budget once they got back home.

Dalzell Continues:"It's easy to get carried away with the holiday spirit as we all want to make the most of our time away, however, many holidaymakers run the risk of letting their holiday dreams turn into a potential financial nightmare.

"So much time and effort is put into booking and planning our holidays, it's important that the same attention is given to considering how to fund them.

Setting up a holiday fund and putting what you can afford by each month is the best way to ensure that you're not still paying for your holiday fun long after your tan has faded." Notes.

*Research was carried out online for Alliance and Leicester by YouGov between 3rd and 8th May 2007 aged 18+ in Great Britain.

Total sample size was 2315 GB adults, and the data is weighted to be representative of the GB adult population.

Adult 18+ GB population: 44,200,000 (Source: YouGov).

1.

4,200,000 people.

2.

884, 000 people.

3.

19,448,000 people.

4.

1,074,060 people.

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