Holiday spend on UK credit cards more than £16bn this year

Holiday spend on UK credit cards more than £16bn this year

More than 14 million adults who have been on or booked holidays this year put all or some of the cost on credit, new research reveals.

They spend around £1,130 on credit, taking total holiday spending on credit to more than £16.1 billion.

Borrowers expect to clear the debt on average after four months, the study shows.

However, 11% of adults paying for holidays on credit say it will take them a year or more to clear the debt.

The results come from research by point of sales credit provider Pay4Later, which is launching a service for travel companies following demand from businesses wanting to offer credit to customers.

Travel firms will be able to offer clients a choice of finance options - including 0% interest - ranging from £275 to £25,000 and over terms of six, nine and 12 months.

Customers can start paying for their holiday as soon as they book it through the Pay4Later service and spread the cost to suit their finances once they return.

Marketing manager, John Wark, said: “As a nation, we are taking more holidays and trips abroad than ever before. Analysis of government data reveals that we took 60 million trips abroad in 2014, 4% more than in 2013.

“By offering customers credit, travel companies could see a huge increase in sales. Our data shows that retailers who offer credit can see sales rise by up to 40% and order values by 300%.”

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