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14/09/2011

1.8 million people begin nine months of paying off summer holiday debts

Many Brits are returning from their summer holidays and will now be embarking on the long hard road of repayment. 1.8 million people went into debt to pay for their holiday this year according to research by R3, the insolvency trade body.

The poll revealed that indebted holidaymakers this year borrowed £1,581 on average - an increase of 40% from last year. This will take on average nine months to repay compared to seven months in 2010.

Frances Coulson, R3 President, comments:

“As inflationary pressures have squeezed disposable income, we’ve seen many individuals getting into debt rather than cutting back. But spending today and repaying tomorrow can have consequences, with more than a quarter of insolvencies occurring as a result of individuals living beyond their means. And with debts to pay, fuel price hikes and rising prices of everyday essentials, household budgets will come under increasing strain over the coming months.”

The research also showed younger holidaymakers are most likely to borrow money to pay for their holiday, with one in ten (10%) 16- 24 year olds going into to debt to pay for a holiday.

For further information please contact:
Charlotte Towerton, R3 External Communications Officer
t: 020 7566 4203 m: 07918 161 291 e: charlotte.towerton@r3.org.uk


Methodology note:
GfK NOP interviewed 1000 adults 16+ in the UK by telephone on 12th – 14th August 2011, and 1001 adults on 16th – 18th July 2010. Data has been weighted to bring it in line with national profiles.


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.