Gap year travellers pay more with credit cards

By UK CreditCards.com

Gap year travellers get credit card adviceStudents on their gap years using credit cards abroad must take care with their spending abroad, FairFX has said.

According to the prepaid credit cards provider, gappers are wasting up to $426 or €307 each month due to not keeping a close watch on their spending.

To remedy the situation, FairFX advised travellers to stick to a tight budget, to pay for smaller day-to-day items with local currency, and to keep a prepaid credit card on hand for everything else.

Prepaid cards, which are pre-loaded with funds from a bank account in the same way as a pay-as-you-go phone, generally charge lower fees for overseas use than other types of credit cards.

Stephen Heath, chief executive of FairFX, commented: "No one likes to find out too late [that] they could have got a better deal."

Direct Travel Insurance recently revealed a rise in sales of 50% for gap year-related policies this year.

Increased redundancies caused by the credit crunch was seen by the firm as a major factor behind more people going travelling.ADNFCR-2308-ID-19221139-ADNFCR

Published: 17 June 2009