Debt to holiday?

A new survey commissioned by Experian has revealed that the majority of vacationers spend more money than expected when travelling (68 per cent) and often rely on credit cards to make up the difference.

Millennials rank even higher when it comes to risky vacation spending – one-third report they have not been saving up in advance of vacation, 72 per cent say they spend more than expected when travelling, and 52 per cent are strapped with credit card debt once the holiday ends.

In fact, survey results show travellers use credit cards over debit cards:

- Lodging: 68 per cent use credit compared to debit cards and cash, 19 per cent and 11 per cent respectively

- Airfare: 67 per cent use credit compared to debit cards and cash, 19 per cent and 11 per cent respectively

- Entertainment: 47 per cent use credit compared to debit cards and cash, 21 per cent and 30 per cent respectively

- Dining: 40 per cent use credit compared to debit cards and cash, 23 per cent and 36 per cent respectively

Budgets and vacations are sometimes conflicting, especially among millennials:

- Forty-nine per cent have accumulated credit card debt while travelling (52 per cent of millennials)

- Forty-six per cent have paid for a vacation by credit card when they didn't have enough saved (50 per cent of millennials)

- Thirty-seven per cent have cancelled vacation plans due to budget issues (44 per cent of millennials)

- Thirty-three per cent of travellers plan to use their tax refund to pay for 2015 summer travel (50 per cent of millennials)

- Seventy-five per cent say staycations are a good way to minimize spending during time off