Warning against borrowing to get through the holidays

Is it worth taking out a loan to pay for some entertainment over the holidays?

The summer holidays are an expensive time of year and many parents in particular can feel pressured to borrow so they can keep the kids happy.

A survey carried out for moneysupermarket.com at the end of June indicated that 18% of parents expected to end up in debt as a result of paying for their days out in the summer holiday.

Most of the parents in that group said they'd make use of their overdraft or credit card to borrow the money, while 22% said they'd take out a loan. So about 4% of parents in total said they'd be taking out a loan to help them cope with the cost of family days out.

But James Falla, personal debt expert at beatmydebt.com advised against borrowing more to get through the holiday period.

"With finding things to entertain the kids over the holidays becoming ever more expensive, it is a great temptation to borrow to cover the extra cost. However with the cost of living increasing and many incomes stagnated it is getting more and more difficult tp repay debt" he warned.

Plan ahead

A spokesperson for Think Money advised parents to plan ahead for expensive times of the year like summer - and to think carefully before borrowing.

In the right circumstances, a loan can allow parents to make the most of the holidays and make sure their kids see, do and learn a lot. As long as they're confident that they've found the best way of borrowing - and that they can afford to clear the debt in good time, without paying more interest than they consider acceptable - taking out a loan can make a lot of sense.

Having said that, saving up beforehand can be a much better way of paying for the summer's activities.

James Falla agrees. Saving up for the holiday expenses is by far the best thing to do. This summer it is more important than ever to avoid borrowing especially if you are already in debt" he advised.

Think Money advises that there are all kinds of things that cost little or nothing to enjoy. The UK's countryside is full of natural beauty spots, ideal for picnics, cycling, walks, climbing - whatever's appropriate for the age and abilities of a family's members.

Barbecues at home, trips to the beach, visits to museums, sleepovers with friends... It's good to look forward to things like theme parks and other potentially expensive treats, but there are so many other ways to enjoy time with the kids without stretching the family's finances.