Huge numbers pay for holidays on credit

Overall 14.21 million adults who have been on or booked holidays this year put all or some of the cost on credit.

On average they spend around £1,130 on credit taking total holiday spending on credit to more than £16.1 billion.

Pay4Later has launched a new service for holiday and travel companies following strong demand from firms wanting to offer credit to their customers.

The new service will enable firms to offer their clients a choice of attractive finance options – including 0 per cent interest – ranging from £275 to £25,000 and over terms of six, nine and 12 months.

Customers can start paying for their holiday as soon as they book it through the Pay4Later service and spread the cost to suit their finances once they return.

Other findings from Pay4Later’s research reveals:

• 79 per cent of people have been on a holiday this year, or have booked one

• 38% put some of their holiday booking on credit

• Of those that used credit to book their holiday, 5.85 million people used credit of over £1,000,1.07 million people used credit of over £3,000 and 357,522 people used credit of over £5,000

• In terms of how long it will take them to pay back this holiday credit, 34 per cent said six months or longer, and 11 per cent said a year or longer.

Pay4Later Applications will take less than 10 seconds to complete and all those made via Pay4Later’s platform involve ‘soft’ credit searches, meaning a customer’s credit rating will not be 
affected.