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As the school holidays approach, a lot of people will be looking forward to some well-earned down time. But while the idea of taking a break can be exciting, the cost of making summer special can leave a lasting financial impact.

Recent research from TransUnion found that 1 in 10 UK adults plan to pay for their entire summer holiday this year using credit.[1] For some, the longer-term financial strain of doing so might not be something they’ve fully considered.

What to do if I’m still trying to pay off my last holiday?

According to the same research, 2% of UK adults are still paying off their 2024 summer holiday, with overspending last year reaching an average of £1,179 across the summer months.[2]

So how does this happen?

Often, it comes down to the pressure to “make the most of it” – especially when social media makes it feel like everyone else is booking big trips, expensive days out or picture-perfect stays. In fact, 36% of people feel more pressure to spend in summer because of what they see online.2

Who is most likely to borrow credit for summer?

  • 14% of 18-24-year-olds are planning to use credit or Buy Now, Pay Later (BNPL) to help fund their summer plans
  • BNPL is especially popular for purchases under £50
  • The average cost of a family holiday now sits at £3,6283, which many people simply can’t afford

How to stay in control of summer spending?

Whatever your plans this summer, a little preparation can go a long way in helping you enjoy your break, whilst staying in control of what you spend.

Here are a few simple ways to keep your holiday spending on track:

Set a summer budget

Decide what you can comfortably afford to spend – on travel, meals or extras – and try to stick to it. Setting a budget helps reduce unexpected costs and avoids that ‘tap and go’ regret later on.

Track what you’re spending

Keep a note of what you’re spending as you go. Even small purchases can add up fast when you’re in holiday mode.

Check your credit report

Free tools like Credit Karma or ClearScore let you check your credit report and see where you stand. This can help you plan ahead.

Enjoy a staycation

There’s plenty to explore closer to home. Local parks, walking trails, free museums and community events can all make for a fun (and budget-friendly) day out.

Plan meals in advance

Eating out can quickly eat into your budget. Pack lunches, plan picnics and make use of supermarket offers to keep food costs low.

Try low-cost kids’ activities

Take advantage of free activities like crafts, garden games or library events. Teaming up with other parents to share childcare can also be a win.

Save on clothes and kit

Summer sales, charity shops and second-hand online marketplaces can help you save on things like swimwear, toys and uniform.

Need help with summer spending?

If you’re finding it hard to keep up with the cost of summer, or are feeling stressed about repayments, you’re not alone – and you don’t have to manage it on your own.

Call us free on 0800 813 1833, use Live Chat on payplan.com or fill out our form to connect with us on WhatsApp.

Want to feel more in control of your everyday spending? Visit BudgetSmart – our free hub with tips and tools to help you budget confidently.

[1] https://newsroom.transunion.co.uk/one-in-ten-uk-consumers-to-put-entire-summer-holiday-on-credit/

[2] https://www.natwestgroup.com/news-and-insights/news-room/press-releases/financial-capability-and-learning/2024/sep/summertime-sadness-one-in-two-brits-overspent-this-summer-driven.html