One in 10 (10%) people will pay for this year’s summer holiday entirely on credit, a survey indicates.
Those planning to put their summer 2025 vacation entirely on credit are using methods such as credit cards and buy now, pay later, according to financial insights company TransUnion.
Meanwhile, 7% are using credit to partly fund their summer getaway.
Some 2% of people said they are still paying off their 2024 summer break. A further 2% did not borrow for last year’s trip but wished they had.
People in London are the most likely to use credit to entirely fund their 2025 summer holidays, the research indicates, with 17% planning to do so, compared with just 4% in Wales.
Northern Ireland (14%) followed closely behind London, while 10% of people in Scotland, the Midlands and southern England said they will use credit to pay entirely for their holiday. Some 7% of people in northern England will put their summer break on credit, the research indicated.
Gen-Z adults aged 18 to 24 are the most likely age group to be putting their 2025 summer holiday on credit, with 14% planning to fund their trip by borrowing, according to the survey of more than 2,100 people across the UK in June, carried out by YouGov.
Some types of credit may offer certain protections if something goes wrong. For example, people paying by credit card may find they can claw money back using Section 75 of the Consumer Credit Act, if they do not get the service they were expecting, depending on the circumstances.
Section 75 allows people to raise a claim with their bank or lender for a breach of contract or misrepresentation by the supplier.
Madhu Kejriwal, chief executive of TransUnion in the UK and Europe, said: “These findings highlight the growing role of short-term credit in making holiday plans a reality.
“Clearly, responsible credit use can help consumers to afford or spread the cost of life moments, like holidays.
“However, consumers should be aware of the risks of longer-term financial pressure and ensure they only make credit arrangements than they can afford to repay.”
Here are some suggestions from TransUnion for holidaymakers using credit:
1. Read the credit agreement carefully before booking a holiday.
Check the terms and conditions of your credit agreement or buy now, pay later loan thoroughly, including repayment deadlines and any late payment fees. Missed or late payments, even on small amounts, may be reported to credit reference agencies and negatively impact a credit report, potentially affecting the ability to borrow in future.
2. Keep an eye on all credit purchases.
Credit for flights, accommodation, and extras can quickly add up when planning a holiday. Keep a clear record of how much credit has been taken out and set reminders or enable automatic payments to avoid missed repayments and additional fees.
3. Monitor credit reports.
This can help people to understand their financial standing before and after a holiday. Credit reports can often be checked for free.
4. Do not ignore bills if you are struggling.
Contact the lender for support or seek free support from charities such as StepChange Debt Charity, or National Debtline which is run by the Money Advice Trust.
