Avoid These World Cup Own Goals!
If you're heading to Germany for the World Cup, or going abroad at any time this year, read this guide to avoid being a fleeced foreigner!
Around a hundred thousand England fans are expected to travel to Germany during June (and July, if things go well!) to follow England's fortune in the World Cup.However, official England sponsor Nationwide BS has warned England fans (and other tourists) to be on their guard when spending money overseas, so that they can avoid a hat-trick of financial own goals. With just over a fortnight to go until England's tournament kicks off against Paraguay on 10 June, Nationwide BS has the following advice for travellers:First own goal: Paying extra for overseas transactionsNationwide BS calculates that a typical fan will spend over £1,400 following the England team, as follows:£225 on a return economy airfare;£568 on a four-night hotel stay;£40 on a match ticket (at face value); and£600 of spending while in Germany (that's a LOT of bratwürste und bier!)Unfortunately, if you take the wrong credit card with you, you could end up paying a tidy sum in hidden charges, thanks to currency conversion charges, also known as foreign currency loading fees! Here's how much the leading banks and card issuers charge for overseas transactions:Extra cost of various purchases (totalling £300) and three £100 cash withdrawals overseasDebit card issuerCharges (£)Additional cost (%)Nationwide BSNilNilBarclays36.636HSBC37.386NatWest48.968Lloyds TSB51.639Halifax59.1310Credit card issuerCharges (£)Additional cost (%)Nationwide BS61HSBC57.3710BarclaysHalifaxLloyds TSBNatWest58.8710As you can see, Nationwide BS' own cards don't charge these unfair fees, so they come out ahead of the pack as the outright winner in this category.Second own goal: Picking the wrong cardNationwide BS is unique among the UK's credit-card issuers, because it deducts your repayments from your most expensive borrowing. So, for example, if you make a cash withdrawal using a Nationwide BS credit card (charged at, say, 18.9% APR) and also have a 0% on purchases for nine months deal on the same card, your repayments will be taken off your interest-bearing debt first.All other card issuers do the reverse (called a negative payment hierarchy), leaving you paying interest on all of your spending and cash withdrawals until your entire balance, including any 0% balance transfers, is paid off. Yellow card, referee!Third own goal: Paying for purchases in sterlingFinally, Nationwide BS warns fans of dynamic currency conversion, which is a really sneaky and underhand trick. Under VISA rules, UK cardholders have the right to pay for purchases in pounds sterling or in the local currency (which is the euro in Germany). Sneaky retailers and other outlets now routinely charge Brits in sterling and then convert this sum back into euros at extortionate exchange rates. Red card!If you want to avoid this scam in Germany, say (or hand over) the following phrase when you hand over your cards (and check your receipts carefully before signing or punching your PIN):Ich möchte mit euro bezahlen, bitte. (pronounced: Ik merk-te mitt you-row be-zar-len, bitter)In addition, DON'T go abroad without travel insurance, because the risk simply isn't worth it, especially as premiums have fallen steeply in recent years. Lastly, if you want to take some euro notes or cash with you, read our guide to cheap holiday-money deals.More: Buy now, pay 2007 -- compare credit cards | Get quality quotes for travel insurance