Flex your plastic
Unless you’re really travelling to the ends of the earth you’ll almost certainly be able to use your credit cards on holiday. And because credit card companies get good exchange rates, this can be an ideal way to pay for car hire, accommodation etc. provided you’re responsible with your repayments! It’s a good idea to let credit card companies and banks know if you plan to use your cards abroad. With the growth in fraud, they could block your account if they think it’s being accessed fraudulently – a tad inconvenient if you’re relying on it for big spending!

A word of warning: avoid using your credit card to withdraw cash from ATMs. Your credit card company will charge a cash advance fee (usually £2 plus) for each transaction. That’s on top of the interest you’ll be paying. If you do use your credit card for cash, do it wisely. Alternatively, the Visa Travelmoney card is a pre-paid card that lets you obtain local currency from almost one million Visa ATMs. Any money on the card is protected by a PIN, and because the card is not associated with any of your accounts, you simply throw it away when you’ve used up the money stored on it.

Be safe
Carry only as much cash, travellers cheques and plastic as you’ll need each day and carry them securely. Keep careful tabs when using your card abroad. Ask shopkeepers or café owners to process payment in your view or better still use Chip and Pin (customers control the transaction by entering the card and pin number themselves) in Europe and Australasia.

And finally, make sure your travel insurance covers your money! Bon voyage!

If you’ve got itchy feet and cash burning a hole in your pocket, check out some of our Spending It guides, including Take a Break and Painting Holidays.