TRAVEL ARTICLES
Tuesday, 14 August 2007
Don't get ripped-off on your next holiday
Most of us spend enough of our hard won money on holidays already, which makes it all the more important that once we're there we don't end up blowing even more on unnecessary card and currency costs. Annually these fees end up costing Brits £726 million, that's an awful lot when one considers the fact that in most cases these extra costs are perfectly avoidable with a little planning and research.
The key to avoid paying more than you need to be is simply to make sure that your planned methods of payment don't involve extortionate extra charges. For instance if you're exchanging currency it makes sense to shop around for a decent deal, there are plenty commission-free currency deals out there but it's also worth checking out the exchange rates - in some cases you may end up getting a better deal paying flat-rate commission at a bank to take advantage of a better rate. Another thing to look out for is getting charged a cash-advance fee when changing currency using a debit card; you can easily avoid this by withdrawing your money from a cash point before hand.
The most significant losses are most likely to be accumulated when you make purchases on plastic whilst abroad. There are a number of extra charges associated with using cards that could easily accumulate, so before you start flashing the plastic it's worth checking if the debit card for your current account will incur any extra charges on foreign purchases. An 'exchange rate loading fee' for instance is quite common and typically means a 2.75% rising to 3% levy on every purchase. If you travel a lot it may be worth switching to an account such as Alliance and Leicester's award winning Premier Direct Current Accounts.
There are a number of credit cards out there however that don't charge you - the Nationwide BS is a particularly good option, it not only features no charge whatsoever on loading fees but also has a very competitive 1.5% cash withdrawal fee. Given that this fee is often more like 2% on top of any loading fee (meaning in your average foreign cash withdrawal you'll be charged a not inconsiderable 4.75%) this represents a very good deal.
The key to avoid paying more than you need to be is simply to make sure that your planned methods of payment don't involve extortionate extra charges. For instance if you're exchanging currency it makes sense to shop around for a decent deal, there are plenty commission-free currency deals out there but it's also worth checking out the exchange rates - in some cases you may end up getting a better deal paying flat-rate commission at a bank to take advantage of a better rate. Another thing to look out for is getting charged a cash-advance fee when changing currency using a debit card; you can easily avoid this by withdrawing your money from a cash point before hand.
The most significant losses are most likely to be accumulated when you make purchases on plastic whilst abroad. There are a number of extra charges associated with using cards that could easily accumulate, so before you start flashing the plastic it's worth checking if the debit card for your current account will incur any extra charges on foreign purchases. An 'exchange rate loading fee' for instance is quite common and typically means a 2.75% rising to 3% levy on every purchase. If you travel a lot it may be worth switching to an account such as Alliance and Leicester's award winning Premier Direct Current Accounts.
There are a number of credit cards out there however that don't charge you - the Nationwide BS is a particularly good option, it not only features no charge whatsoever on loading fees but also has a very competitive 1.5% cash withdrawal fee. Given that this fee is often more like 2% on top of any loading fee (meaning in your average foreign cash withdrawal you'll be charged a not inconsiderable 4.75%) this represents a very good deal.
