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"Fly Now Pay Later" – the UK attitude to holidays

10 August 2007

UK Consumers are taking holidays beyond their means and funding these by borrowing more.

An independent survey commissioned by credit reference agency Callcredit shows that 9pc of people in the UK spent over £1000 per person on their last holiday, not including spending money. It was found that Londoners are the most likely to borrow cash to fund their holiday with 10pc admitting to needing extra money to fund their break away.

Very much a younger way of thinking, the age groups throughout the UK most likely to borrow funds to finance a trip are the 18-24s and 35-44s (both 13pc).

Once a luxury, now we all consider our summer holidays abroad a necessity as do our family and friends. Instead of a holiday being a real ‘treat’ if we have some spare funds left after a long winter, or something that we save for each month, we now use the ‘kiss me quick’ borrowing that has become all too familiar to many of us.

Owen Roberts, consumer credit expert, Callcredit comments “With personal debt increasing by £1 million every 4 minutes in the UK and additional research showing that 4.2 million Britons do not have any qualms about jetting off on their next holiday before actually paying for the last, it appears we have the “fly now, pay later” mentality.”

“We would advise consumers to be more realistic about what they can comfortably afford and ensure that, if they do borrow money to fund a holiday, they are fully aware of the repayment terms and are at ease with meeting these.”

ENDS

Key findings

• People in the Midlands/ Wales are most likely to spend under £100 on their holiday (travel and accommodation only – not including spending money)
• Those in the South are most likely to spend over £1000 per person on their holiday
• Scottish people are the least likely to borrow to pay for their holiday
• Londoners are the most likely to borrow to pay for their holiday
• 9 per cent of people spent over £1000 per person on their last holiday (not including spending money)
• 9 per cent of people in the UK borrow money to fund their holiday
• The 18 – 24s and 35 – 44s are the most likely age groups to borrow to pay for their holiday (13 per cent of each)

Notes to editors

About the research

Research was conducted online by YouGov between 6th - 8th August 2007 and the total sample size was 2,105 adults.

About Callcredit:

• Callcredit (www.callcredit.co.uk) is the UK's most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.
• Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry's needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.
• Callcredit forms part of the Skipton Information Group, together with database management company EuroDirect and market analysis firm GMAP Consulting.

For further press information contact: Jane Fordham, Katie Moore or Sophie Smith at the Callcredit Press Office on 0207 067 0600 or callcreditpr@golinharris.com

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