What are your euro options for pre-booked holidays in Europe
As we will all be aware the recent referendum means that the UK has now voted to leave Europe. This choice will, over the coming years, undoubtedly mean much change is afoot but for many of us the immediate effects are currently are greatest concern. As could have been predicted the decision to leave the EU means our financial markets have taken a dramatic dip and as such one of the end results is the fallen value of the pound. Although it is highly likely the pounds value will stabilise in the coming months, for those of us with holidays booked for the coming months, this causes an immediate concern. Many of us are only able to afford the ability to go abroad on a yearly basis and as such much care and planning is put into not only the destination but also the overall cost of such a trip. With this in mind we will almost certainly want to understand the cost of obtaining the spending money needed to fund our time away. For those of us who booked a holiday in advance and have either been making payments towards it or have paid for the cost of the trip now and are simply counting down the time until it arrives, there may now be an additional consideration as far as our overall costs are concerned. This cost is that of our holiday spending money in light of the fallen pound value. Today we will be looking in more detail as to the possible solutions for obtaining your euros and in doing so attempt to provide peace of mind that these options are truly possible.
Clearly there are two options which are available to consumers facing this situation. The first of which is to secure euros now and in doing so accept the loss without fear of the pound falling further. The second is to wait it out and see if the pound recovers and therefore purchase your required euros at a date closer to the time of your departure. Given the fact that the pound fell to a 31 year low flowing the Brexit result, clearly in its current state the pound to euro conversion has been greatly affected. The first thing to do is shop around to establish which provider can offer the best rate for your money. Generally speaking the online providers available will offer the most competitive rates and some of which exist via the means of comparison sites meaning you can gather all the information in one place.
Another consideration is the use of a prepaid travel card facility. One of the biggest benefits of using a prepaid travel card is the fact that they eliminate the need to carry large quantities of cash which of course could be lost or even stolen at any time. Instead a prepaid card allows you to carry all of your travel money in one place along with your other travel essentials such as your passport and travel documentation. In addition using a prepaid travel card is simple and straight forward and can be loaded with an amount of your choosing in advance of travel or if needed, whilst you are aboard. The rate charged on such a facility will be locked in on the day of purchase meaning, whether for good or bad, a changing conversion rate will not affect your previous purchase. Of course there is a gamble here too given this fact and unlike debit or credit cards will not use the rate if it has improved come the day you wish to spend the money. Of course a sensible option may be to split the purchase of your holiday money between now and the time at which you are due to depart. This would allow the ability to see if the value of the pound versus euro improves in the coming months. Where this hopefully becomes the case you will have secured a proportion of your holiday spending money at a lower high whilst then gaining a better rate down the line. Again, be aware that this works both ways.
What is clear is that for holiday makers currently facing this position there are some difficult decisions ahead. Many market experts have advised that in a general sense we as consumers should not panic and instead allow a period of time for the markets to settle and then review the true impact of Brexit. Whilst for some of us this may mean a period of uncertainty, making ill-informed and unplanned decisions concerning our finances is unlikely to reap positive results. Monitor the markets for as long as possible and in doing so gain an understanding as to what the best available rates are, when you are then comfortable to do so, make a decision concerning how and when is suitable to purchase your euros.
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
Warning: Late repayment can cause you serious money problems - For help, go to moneyadviceservice.org.uk
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Author: Internal Customer Services Agent