Tips for Maximizing Your Holiday Money: Where to Buy, How to Avoid Fees, and One Mistake to Avoid
Summer is fast approaching, and with it comes the excitement of planning holidays abroad. But before you jet off to your dream destination, it’s important to consider how you’ll manage your holiday money. From where to buy it to how to avoid fees, here are some tips to help you make the most of your sterling while traveling.
One of the most common ways to spend money abroad is with a credit card. According to James Jones, head of consumer affairs at Experian, using the right credit or debit card can offer the best exchange rates compared to currency exchange shops. However, it’s crucial to be aware of potential fees such as non-sterling transaction fees and cash withdrawal fees. To avoid these charges, consider getting a card with travel rewards and pay it off in full before interest accrues.
When using a credit card, be cautious of a common trap – choosing to pay in pounds instead of the local currency. While paying in sterling may seem convenient, you could end up paying more for your purchase due to unfavorable exchange rates set by the retailer’s bank. Always opt to pay in the local currency to avoid unnecessary fees.
If you prefer using debit cards, some service providers offer travel debit cards that don’t impose non-sterling transaction fees. Alternatively, prepaid travel cards can be a convenient option, especially if you want to avoid credit checks. These cards can be loaded with multiple currencies and offer competitive or no charges for foreign usage.
While cards are convenient, it’s essential to have some cash on hand, especially in countries where card acceptance may be limited. Sean Tipton from the Association of British Travel Agents advises getting cash out in the UK before your trip to avoid hefty charges at ATMs abroad. Additionally, consider the destination’s currency exchange rates and inflation rates before deciding when to exchange currency.
Whether you choose to buy currency in-store or online, it’s important to compare rates and fees to get the best deal. While online suppliers may offer better rates, be mindful of minimum order values and delivery times.
In conclusion, managing your holiday money effectively can help you make the most of your travel experience. By choosing the right payment methods, avoiding unnecessary fees, and planning ahead, you can ensure that your sterling goes further while exploring new destinations. So, before you embark on your next adventure, take the time to consider these tips and make the most of your holiday money.