Credit cards 'should be understood before holidays'

Wednesday, June 23rd 2010

British holidaymakers preparing for their summer holiday have been given some tips to avoid credit chaos while abroad.

Before jetting off to warmer climes, it is worth checking exactly what fees will be applied should a debit or credit card be used overseas.

The Daily Mail notes many banks and financial institutions charge up to £4.95 when £100 is withdrawn, while each transaction can be met with a levy of between £1 and £1.50.

As most cards will charge users extra to use them abroad, the newspaper believes the shrewdest way to operate is to withdraw large sums less regularly.

This means fees may only have to be paid once or twice during a break, as it is worth remembering 20 transactions could add as much as £30 to the cost of a holiday.

Phone operator Three recently responded to worries about the rising cost of going abroad by cutting its mobile fees in Europe by half.