New research from Go.Compare has found that 3% of consumers will be paying for their holidays in 2023 using a credit card.
In the research Go.Compare asked more than 2000 people about their holiday plans for 2023, where respondents were asked How are you planning to pay for any holidays you hope to go on in 2023?, nearly a quarter (23%) of consumers planning on a holiday this year answered that they were planning to use a credit card to pay for their holiday this year, with another 5% planning on taking out a loan to cover the cost.
Under 25s were the group most likely (29%) to be relying on credit cards to pay for their trips, with the under 35s the most likely to take out a loan (9%). It was these younger age groups who were also the most likely to be going on holidays with other family members who would be paying for the trip (21%).
More than a third (40%) of people said they had enough money in their bank account to pay for their holiday, or that their monthly salary covered the cost. The survey revealed that those over 65 were most likely (50%) to pay for their holiday in this way.
Ceri McMillan, Go.Compare Travel insurance expert, said “It’s worrying that a significant proportion of people are planning to use their credit cards or take out a loan to cover the cost of a holiday this year. This could be yet another knock-on effect of the cost-of-living crisis, where disposable incomes are being squeezed and people are having to use other methods of payment for big purchases.”
“It may be that some people are opting to pay for their holidays on their credit card as it means you are further protected if your travel firm collapses – most credit cards offer buyer protection on purchases between £100 and £30,000 – but it also provides the chance to spread the cost of the holiday across the year. But for whatever reason people are using their credit card, it is always important to fully understand the benefits and risks to your financial decisions, no matter how big or small.”