Summary of a post.
5 easy ways to beat the Brexit holiday crunch
The vote in favour of Brexit at the recent EU referendum has produced a mixed set of consequences, to say the least. But one reality we’re all getting to grips with is the decline in the value of the pound. Although the ship has steadied somewhat in recent days, and the outlook is slightly less pessimistic than it was a week or two ago, seeing our currency slump to 31-year lows has been most unnerving.
Those feeling as dismayed as any are holidaymakers. The summer is allegedly upon us, but as the weather continues to be, er, inconsistent, the urge to hop on a plane to Europe or elsewhere burns all the more. But chances are the purse strings have had to be tightened before you’ve even packed your bags as a result of the pound’s recent performance – or lack thereof.
So, how to still make your pennies go a long way then? We’ve got a 5-step plan to help ensure that you still get to have all the fun and relaxation you imagined, but without burning a hole in your pocket.
1. Booking your flights
There are all sorts of nuances for getting the best deal on flight tickets – be that the EasyJet trick of booking a flexi-fare ticket outside of school holidays, only to later switch it back to your preferred dates; free of charge. Or using foreign travel agents for flight bookings. But one thing we’d definitely recommend is to pay by credit card if your flights or package holiday costs more than £100. That way, you are afforded full cover as per Section 75 of the Consumer Credit Act, and the card company is liable if the airline goes bust. Just be sure to pay the outstanding balance of the card off by the end of the month to avoid hefty interest charges.
2. Choosing the right specialist cards
Certain specialist credit cards such as Creation Everyday and Halifax Clarity have no exchange fee, meaning you get the ‘perfect rate’, without any additional fees. So, provided you are able to pay the balance off in full by the end of the month, it is the cheapest way to convert currency.
There is a credit score check for cards like these though. So, if you prefer, Travelex’s Supercard is available to anyone, and also offers the ‘perfect rate’ (as per Mastercard rates). Just be wary of cash withdrawals, as there is a 2.99 per cent fee associated with this.
3. Pay in euros!
If you go down the specialist card route, be sure to pay in the local currency if asked each time you use it. The reason for this is that, if you pay in pounds, the ATM, restaurant, bank or shop you swipe at will do the conversion – rather than your own card – and their rates, particularly on the continent, tend to be abysmal as a general rule.
4. Exchange currency like a pro
If you prefer to have cash in hand rather than card, that’s okay too. The important thing is to choose the exchange provider wisely. The MoneySavingExpert travel comparison tool gives you a good idea of the most competitive exchange rates across a wide range of currencies. But, failing that, the most important rule of thumb is to not change money at places such as airports, hotels and banks. Chances are, you’ll get ripped off.
5. Be smart with finance
Just over 20 per cent of Brits who set off on holiday do so using finance of some kind. The key is to do this wisely, and to leave yourself with a feasible repayment structure that isn’t going to add to your stress levels upon your return. In the right circumstances, we’re obviously proponents of low-cost personal loans for the purpose of holidays, while many homeowners are able to increase their mortgage if they need extra funds. But the best advice we could give is to avoid relying on your UK credit card to fund the trip, as this could mean forking out a lot of money in interest if you don’t pay the balance off within the same month.
Of course, there are many other ways to boost or preserve the holiday kitty. Booking things like car hire and day trips before you leave will almost certainly result in savings, while asking locals once you’re there for the best places to eat and activities to do should help to keep you out of tourist traps. Another thing to consider is if you’ve been delayed for an EU-regulated flight by more than three hours over the last six years, you could be in line for handsome compensation (if the airline is to blame) as per the recent ruling by the European Court of Justice.
All in all, there is plenty of scope for guile, and knowledge of some of these tricks can go a long way to trimming fat off the budget. But there’s also no substitute for sensible spending. That’s not to say you should spend the whole trip counting the pennies. But deciding on a budget, and sticking to it, will ensure that when you return home, there'll be no additional financial burden on you. In fact, the only regret will probably be that you aren’t still on the beach.
Main image 'Holiday' by Joel Gonsalves. Image subject to copyright. A link to the image and appropriate licence can be found here. You must not use or reproduce this image other than in accordance with the licence.
Related articles:
- The benefits of home improvements & how to fund them
- Quick guide to financing a wedding
- Are personal loans better than secured loans?
Get email updates for future blogs:
Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.
As with all investments, your capital is at risk.
- Summary of a post.
- Summary of a post.
- Summary of a post.
In line with our risk management framework, today we published our Q4 2019 performance update.
As a platform, we take great pride in all that we've achieved since opening our doors for business nearly six years ago. We’ve
Featured
Wednesday’s Budget speech, coupled with the cut to Bank of England rates, represented a decisive response to the coronavirus. Here we analyse the impact it will have on mitigating disruption from Covid-19, along with the long-term implications of this significant fiscal stimulus.
Rumblings from the Treasury ahead of next week's Budget suggest tax grabs will be needed to fund increased spending, and it appears UK enterprise could be in the firing line. Here we articulate why targeting entrepreneurs and small business is ill advised.
In a difficult climate, customer acquisition and lead generation present stern challenges for UK retailers, and a great deal of marketing spend invariably gets directed towards getting feet through the door.
There is a variety of literature and research illustrating the importance of building brand loyalty, albeit with some degree of variance.
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The idea of peer-to-peer (P2P) lending is a simple one; you lend money to those who wish to borrow, with a view to receiving a great return for doing so.
Most popular
- Summary of a post.
The 2019-20 ISA season has been a damp squib, with banks disinterested in attracting savers’ cash, rates cut, and the stock market in freefall. However, the emergence of the IFISA means alternatives beckon for those seeking a stable middle ground in terms of risk and reward.
In a decade of slow recovery, the rapid rise in asset prices has been the standout. But how sustainable has price growth been, and could we be in the midst of a bubble?
- Summary of a post.
Most people consider income tax to be a given, but in the UK it is barely two centuries old. In this article, we look at how this tax has developed over the years, and also why it is set to remain at the core of our tax system for many decades to come.
Open banking celebrated its second birthday last month, but has the ‘revolution for financial services’ that was promised actually come to pass? In this article, we look at the progress the initiative has made so far, and what the future holds in the face of high levels of scepticism.
Recent
The Lending Works Shield does not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The Lending Works Trustee has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Lending Works Shield when considering whether or how much to invest. For more information click here.