The amount of money people generally spend on a daily basis when using a credit card tends to exceed an initially thought-out budget. This is due to the fact that we can’t physically see the money we are using until the bill arrives at the end of each month. This is where hidden costs creep in without us being any the wiser.

Those people who use their credit or debit card whilst on holiday abroad are even more prone to over-spending and racking up huge bills. This is due to the fact that when we are on holiday we declare our good sense and saving mentality at the airport gate and convince ourselves that just being on holiday equates to escaping our lives and therefore relinquishes us of following our usual routines and self-imposed conformities. For example, people will indulge themselves by eating and drinking more than usual, going out for meals at restaurants on a daily basis, perhaps even twice a day, and purchasing items that in everyday life they would deem an unnecessary extravagence.

Using a credit or debit card also allows people the luxury of not knowing how much they’ve spent and they therefore lose track of the amount and simultaneously condone the spending because they are ‘on holiday’. A survey conducted by uSwitch revealed that British holidaymakers will spend £23bn using their credit and debit cards whilst abroad this year alone.

The majority of travellers are unaware of the costs they are incurring, and while most consumers are conscious of the fees involved for both cash withdrawals and exchange rates, they are the unwitting victims of the English banks who charge an average of £1.19 per individual overseas transaction. By making regular transactions of small amounts of money a person will end up paying a great deal more. If someone is away for a week, the inevitable two meals that they will purchase daily, each done on their credit or debit card, will result in extra costs of up to £21, the price of another meal.

Holidaygoers are advised to withdraw larger amounts of money at a time thereby using cash to make their purchases, in this way by reducing the usage of their plastic they will in turn lessen the bank charges. Another alternative would be for consumers to exchange their money on a commission-free basis prior to travelling, for example at your local post office, and simply use this money while on holiday.

Furthermore, if it is preferred to stick to the plastic, then it is recommended to keep an eye on your travel outgoings by setting up online banking which is accessible anywhere, as long as there is internet access. This will also prevent the possibility of card fraud as you will be aware of any strange behaviour which could occur by regularly checking your credit card transactions online. Ultimately, select a method that works best for your needs and circumstances and remember to be a conscious spender even when you are on vacation.