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Wary of debt, we're holidaying at home this year

This year, a 'debt-conscious' third of Britons are determined to cut back on the cost of their holidays. So says insolvency trade body R3, whose recent poll indicates that six out of ten of those people are choosing to holiday here in the UK.

Fully 71% of the ones who are going abroad are staying in lower-cost accommodation this year, while two thirds are limiting what they're spending on travel - and three in five are being more careful about the cost of activities and meals out while they're away.

In all, 30% of Britons aren't going on holiday at all this year - quite an increase on the figure from last year (25%).

R3's press release goes on to look at the way people are paying for their holidays. It's alarming to note that many will actually get into debt to pay for their time away. Although it's just 5%, that amounts to 1.8 million people.

On average, they'll borrow £1,581 - 40% more than last year's average - and take an average of nine months to repay it. Last year, they spent an average of seven months repaying their holiday debt.

It seems younger people (fully 10% of 16-24 year-olds) are much more likely to borrow for a holiday.

"For those who have borrowed to pay for their holiday," said R3 President Frances Coulson, "they should be aware of the high interest rates that may be charged. R3 members have seen an increase in the number of financially distressed individuals whose debts include loans."

A spokesperson for the IVA Advisory Centre commented: "It's good to see people taking sensible steps to cut back on their spending, but as always, we'd urge people to think very carefully before getting into debt to pay for a holiday.

"If they're confident they can repay the money and comfortable with the repayments they'll have to make, borrowing can make sense. However, if they're not sure how they'll repay it, there's the risk they'll find themselves struggling with that debt much further down the line - when the holiday itself has become a distant memory."