Brits risk credit card debt abroad

15/02/2010

Despite the average household debt in the UK standing at around £9,000, Britons are still adding to their credit card debt by accruing unnecessary charges while abroad.

Research from European bank Santander has revealed that Britons spent £1.5 billion on credit cards while abroad in 2009.

This meant that they then paid £122 million of unnecessary foreign exchange fees to cover their credit card use.

Emma Roberts, director of Santander cards, commented: "With many Britons embracing a more careful approach to their spending, foreign exchange fees are one expense that those travelling abroad this year can definitely do without."

The research found that credit cards were the most common payment used while abroad, despite there being cheaper options.

Charges resulted from an average foreign exchange fee of 2.75 per cent, which is imposed on purchases made abroad by most credit card companies.

With Britons spending around four weeks of the year abroad, this meant avoidable payments of some £600 for those who relied solely on their cards while abroad in 2009.

Posted by Fiona Smith

Tags; Budgeting Advice,

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