The best ways to pay for your holiday

Rachel Robson runs through the very best ways to pay for your holiday

If you’re off on holiday soon, you might be wondering how to pay for it all. So here are my top tips.

Pay by credit card

Believe it or not, booking your holiday with a credit card can be the best way to pay. Not because it encourages you to get into debt, but because you’ll be protected under Section 75 of the Consumer Credit Act.

This means that if you spend between one hundred pounds and thirty thousand pounds in a single transaction, and something goes wrong with that purchase, you’ll be able to apply for a refund.

Interest-free spending

If you know your holiday will be expensive and you won’t be able to pay for it in full, you should pay for your holiday with a nought percent on new purchases credit card. That’s because you won’t have to pay any interest on your holiday payment for up to a year!

So this means you’ll have up to twelve months to pay off your debt without worrying about the interest stacking up.

Low rate for life

If you know the amount you’re spending on your credit card will take more than a year to pay off, you might prefer to use a low rate credit card. These credit cards offer a low rate of interest for the life of the debt. So you can spend on the card, knowing that the rate will be low until you’ve paid off the balance in full.

Get rewarded

If, on the other hand, you know you WILL be able to pay for your holiday in one go, it’s a good idea to pay for your holiday with a rewards credit card. That’s because you can earn airmiles for your spending. And once you’ve gained enough airmiles, you can put these towards your next holiday!

Save up

Finally, if you’d prefer not to pay with credit card, you could simply save hard! There are plenty of decent savings accounts on the market right now, so why not check out the savings comparison centre at lovemoney.com to find one right for you?