One in five pushed into debt

With the summer holidays now in full swing, moneysupermarket.com reveals many parents are pushing themselves into debt by paying for activities to entertain the family.

Related topics:  Finance News
Millie Dyson
2nd August 2011
Latest News
Research from moneysupermarket.com reveals one in five parents (18 per cent) expect that paying for days out over the summer will push them into the red.

Of this group, over three quarters (76 per cent) will be using a credit card or overdraft facility to fund activities, but perhaps more worryingly, almost a quarter (22 per cent) will be taking out a loan to fund the cost of family days out this summer.

It's perhaps not surprising that parents are concerned about paying for summer holiday activities as costs can soon mount up.

For example, a family of four visiting Legoland this summer would end up shelling out around £300 once entry, travel and food costs are taken into account, an amount many households would struggle to come up with through disposable income alone.

An additional site poll of moneysupermarket.com customers shows that 37 per cent of parents plan to save money this summer by visiting their local free attractions. A further 14 per cent of parents said they will use money saving vouchers to help entertain their children.

Kevin Mountford, head of banking at moneysupermarket.com said:

"With the school holidays upon us, many parents will be looking for ways to entertain their families - and unfortunately, keeping the kids busy can be an expensive business. Families need to examine all options before planning their summer fun or they could be left feeling the pinch for many months to come.

"For those planning to use their credit card to pay for activities, having the right plastic in their wallet can save them some serious cash this summer. A product like the M&S Credit Card, which offers zero per cent on purchases for 15 months could be a good option for those shelling out for days out as they can manage their repayments without incurring interest.

"There are also a number of reward cards which offer discount on a variety of activities including shopping, petrol and eating out and can help to trim the final cost of family activities."

Simon James, head of shopping and vouchers at moneysupermarket.com, added:

"No matter how parents intend to fund their holidays, consumers will find that a little planning and shopping around can really make a difference.

"Money saving vouchers are a brilliant way to make big savings this summer, so it's always worth getting online and checking for discounts before booking activities. moneysupermarket.com provides discounts on a huge range of days out and with thousands of discount codes and vouchers available across the country; families could save a packet this summer."
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