Caravan Insurance

Brits looking to take a caravan holiday this year must ensure that paying for it will not turn into an unbearable financial burden, a new report has indicated.

Unsecured borrowing stood at £213 billion in 2006, of which roughly a quarter was put on credit cards, which tend to charge consumers double-digit interest, while the remainder was acquired through forms of lending such as personal loans.

This means that the average British adult has taken on over £4,600 of unsecured debt, the report by Zopa showed, of which £213 is unnecessarily accrued interest, with the nation as a whole therefore owing over £9 billion more than it should.

UK Caravan Insurance

Chief executive James Alexander commented: "The scale of personal debt in the UK is quite astonishing and the extent to which people are being ripped off by their banks, credit card and personal loan companies is simply outrageous.

"People in this country desperately need to start shopping around for a better deal."

This report is particularly relevant to the issue of paying for holidays, with a recent study by Yorkshire Bank showing that one out of every three vacations booked early on this year was financed with a credit card.

Last summer, moneysupermarket.com found that the average UK holidaymaker put £800 of their costs on credit, with those who did not immediately begin paying it off facing a £550 million rise in their collective debt by the start of this year.

Breaking news provided by onequote direct - specialists in UK Caravan Insurance.

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