Exchange rates cause £73m debt management hit
Exchange rates cause £73m debt management hit
- Tuesday, 26 May 2009National
debt management efforts could be impacted upon to the extent of £73 million by foreign exchange rates, according to Abbey.
The credit card provider explains that 57 per cent of holidaymakers expect to use a debit or credit card for purchases while on holiday this summer.
However, this could leave them facing a fee of three per cent for making a foreign-currency purchase - on top of the debt management issues that credit cards may carry.
As a result, Abbey - part of the Santander banking group - estimates a total
national debt management impact of £73 million if this three per cent charge is applied to anticipated holiday expenditure.
The effect could be particularly pronounced for London residents, who plan to spend £332 each per week, compared with a national average of £274.
Abbey recently revealed that the typical Briton is also now saving less, with payments into savings accounts down by £43 to an average of £120 a month in the second quarter of 2009.

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