Summer holidays sidelined in personal debt crisis

With prices rising for energy and food plus the increase in inflation it is no secret that many householders in the UK are finding it hard to make ends meet. But an ING Direct report suggests many households have decided to cancel their summer holiday in order to save money to help with their debts and expenditures.

The news is not at all surprising as the Consumer Credit Counselling Service found Brits have an average of £19,300 in unsecured debt excluding mortgages. ING Direct’s figures show 17 millions Britons will not holiday this year 2.7 million more than 2008 just prior to the financial crisis.

The figures will most likely hurt domestic tourism revenues the most since ING research shows that 88% of those who had failed a holiday in the last three years usually spent their holiday in the UK.

Those that travel abroad are finding problems with a strong pound not giving them as much spending power as before in the Eurozone, the US and elsewhere. Even those that are still taking a holiday are finding ways to cut back by taking shorter breaks with over 50% saying they were spending less time on holiday.

A change in spending attitude was also uncovered as fewer people fewer paying out of credit for their holidays. This year over 36% say they will pay from their savings to holiday which is up from only 30% a year ago. This indicates they do not want to be stuck paying large credit cards accounts.