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Those that take out a holiday loan to go on vacation are being urged to avoid ATM’s while on their trips. Although the interest rates for a holiday loan are generally low, the rates for ATMs overseas are not. Many are unaware of the extra fees that they will be paying and do not find out until it is too late. For many this means that they will have to take longer to pay off their holiday loans.

Martyn Hocking, editor of Which? Money, stated: “We often spend ages finding a great value holiday, but then forget about getting the best deal when it comes to our spending money. Don’t assume that commission-free means you’re getting a good rate - shop around or you could find yourself paying over the odds.”

Sean Gardner of MoneyExpert.com added: “Withdrawing cash from an ATM or over the counter whilst abroad can be the most convenient way of getting hold of your money. It’s also safe and simple. However, most people will have to pay for the privilege and some will pay considerably more than others. With the pound currently very weak against the Euro, unnecessary fees are the last thing holidaymakers need.”

Related reading: Holiday Loans