Preparing Financially for Holiday Shopping
Pay in Cash, Travellers Cheques or Credit Card?
Apr 26, 2009
Whilst the prospect of going abroad to carry out lots of holiday shopping is a very enjoyable experience it does hold a few perils. Deciding whether it is best to pay in cash, use travellers cheques or a credit card can save a lot of heart ache further down the line.
Should Consumers Take Out Insurance when Holiday Shopping?
Like most things in life, good preparation is the key to a successful vacation. Chris Price of Direct Line Travel stated in a press release entitled "British holidaymakers’ £1.5 billion missing items bill" that: "We would advise all holiday-makers to protect themselves by taking simple, sensible precautions and by making sure they are insured against any loses in case the worst happens". Always make sure holiday insurance is in-place before departing, particularly if travelling to the United States.
Is it Sensible to Pay in Cash when Holiday Shopping Abroad?
Whilst those going holiday shopping abroad will inevitably pay in cash for some purchases, carrying money or leaving it in an empty hotel room is a risky business. According to a report by thisismoney.co.uk in September 2005, 41 per cent of thefts concerned stolen cash. According to Direct Line Travel Insurance, empty hotel rooms are the most common place for thieves to operate. Take some cash for smaller purchases.
Using Credit Cards Abroad
Chip and pin credit card security means that holiday shopping is safer than it has been in many years. The greatest risk of being 'robbed' is by the financial institutions. Contact the car provider directly to find out the cost of withdrawing from an ATM, transaction fees, currency conversion charges etc. Make note of a contact telephone number in case of emergency.
Credit Card Refunds
Make all purchases of over £100 on a credit card as it affords protection under section 75 of the Consumer Credit Act 1974. Should there be a problem with the goods, a consumer is able to approach either the merchant or the card provider for a credit card refund.
Travellers Cheques
Whilst it is easier to pay in cash, travellers cheques offers a holiday-maker greater options for theft protection. Take a combination of large and small notes and leave a list of all the numbers with a friend or family member in case of emergency. American Express are the best at replacing travellers cheques should they ever go missing; they are also the most widely accepted.
Consumers that are planning to go holiday shopping should make sure they have taken out sufficient insurance before departing. Don't simply pay in cash for everything, try to find an inexpensive credit card in order to enjoy protection under section 75 of the Consumer Credit Act 1974.
Sources
Direct Line Press Release
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