A fool and his money are soon parted.. not just the fools it seems

Posted by Jessica Searle in Personal Finance on 5 April 2013 - Jessica worked as a Credit Analyst at checkmyfile until 2013

As financial troubles hit throughout Europe, more holidaymakers are putting their spending money at risk by taking larger sums of cash with them to Europe. Due to fears over the ability to withdraw holiday funds, following bank closures and ATMs restricting amounts or completely running dry in Cyprus, c. Last Thursday, for example, following the reopening of banks in Cyprus, travellers were permitted to take only €100 out of the country.

Experts have urged – mainly concerning those heading to Cyprus, Greece, Spain and Italy - to check their insurance policies too, as insurers tend to cover only limited amounts of cash. Some will not cover spending money at all, others only up to a small amount, such as £150 with a £100 excess to pay.

Age can also affect your travel insurance policy. Travellers under 18 may only able to claim up to £25 if money goes missing whilst on a beach, compared to the £50 of over 18s. This is all very insurer-specific, some specialist policies may cover more, but you will have to enquire beforehand and possibly be subjected to an extra premium. As such, it is vital to read your policy if you are unsure on any points before jetting off, and do not leave it until after the holiday.

Regarding a claim, most insurers will want proof that you had the cash in the first place, so the receipt from the bureau de change is essential, a crime reference number from the local police if it was stolen will also assist greatly. If seized by the authorities at the airport due to a local law, you won’t be able to claim on your policy.

This is as the Financial Ombudsman Service warns that not even these proofs will not be enough for all insurance companies. “Some firms can be officious. Insurers can turn down claims because the money is locked in a suitcase and not in a safe,” says a spokesman. “One complainant took the trouble of photographing their cash in the hotel safe as a precaution. However, their insurer still would not pay up when the cash was stolen because they could not prove the money in the picture belonged to them... And even if you have a receipt showing a withdrawal, it can be hard to prove you didn’t spend it.”

The alternatives to cash can also present problems. Travellers cheques are currently advised to be avoided.

Credit cards, debit cards and pre-paid cards are your best bet, but you will always need some cash.

”It’s always good to take a mix of ways to pay for your holiday expenses”, says Bob Atkinson of travelsupermarket.com. “But if you take plastic, you may find restrictions. Bank transfers are frozen, so shops and services that rely on cash flow from credit card transactions may be insisting on cash.”

After a rather tumultuous time, Cyprus has finally secured a rescue deal for its banks, seeing its 'rich' savers – those with more than €100,000 (£85,000) — forfeit vast sums of their savings in exchange for bank shares.

Unfortunately this means for those of you heading to Cyprus on your jolly holidays, large amounts of cash is your only safe option. So keep an ever watchful eye on those pennies... euros... cash... whatever, and make sure that you spend it all, save perhaps just €100.

Jessica Searle is a Credit Analyst at checkmyfile and has a degree in English Literature from the University of Exeter. You can contact her at jessica.searle@checkmyfile.com

The Advantages & Disadvantages of Store Cards

There are a number of reasons you might take out a store card: whether you’re just waiting in-line at the shop and find out you can save on today’s shopping or they offer the promise of making money in the future, these cards regularly find their way into wallets (or phones via an app). Most big retailers offer their own cards, which allow you to take your purchases home – often with a nice discount applied – without having to part with a penny at the till.

Published on 10 Jul 2018 by Tom Blandford

Full Article

What Happens To Your Credit Report When You Move Country?

Moving from one country to another results in a lot of changes and new things – a new place and culture, new job, new people and in some cases even a new language. However, one thing lots of people do not realise is that you will also be starting afresh when it comes to your Credit Report. Credit Reports and the information they contain are country-specific and do not follow you from one country to another.

Published on 27 Jun 2018 by Kirstie Day

Full Article

What To Do If You’re a Victim of Data Breach

Another day, another high-profile data breach, with the morning news bringing word of another leak of personal information that affects millions of consumers. This time it’s the turn of Dixons Carphone - the company behind PC World, Currys and Carphone Warehouse.

Published on 14 Jun 2018 by Jamie Mackenzie Smith

Full Article

What Does Bongo Know About You?

“What does Bongo know about you?” A slightly off-the-wall question I’ll grant you, but one that you might have been asked at some point in time.

Published on 7 Jun 2018 by Richard Catlin

Full Article

Why Don’t Millennials Take Out Credit?

As a millennial, it can feel like my generation is besieged with criticisms on a daily basis, and not all of them are entirely fair (though lots are). We are frequently told that as a generation we are entitled, we have it so much easier than our elders and arguably, worst of all: we buy too many avocados. While I don’t buy avocados, I do have access to credit, which makes me a minority among my age group.

Published on 16 May 2018 by Beth Jennings

Full Article

Why Is My Loan Balance Wrong On My Credit Report?

One of the single most important pieces of information to appear on your credit file is the information relating to your credit agreements and how you repay them - with this information lenders can see your borrowing history across the last six years and use it to help them decide whether or not to offer you finance.

Published on 7 May 2018 by George Coburn

Full Article

How long do closed accounts appear on my credit report?

Some people believe that as soon as a credit agreement is settled and closed, it will no longer be reported to the UK’s Credit Reference Agencies and therefore will no longer have an influence on future credit applications. However, this is a popular misconception, one that could affect your ability to get credit if not correctly understood.

Published on 2 May 2018 by Tom Magor

Full Article

How to Save Big in the Bank Holiday Sales

Bank holidays may not guarantee a day of sun-soaked fun, but as is British tradition, we’d probably be quite happy barbecuing in the snow if it came to it. But no matter what your plans are, if you want to grab a bargain, you can use the Bank Holiday sales to save some serious money.

Published on 26 Apr 2018 by Kiah Phillips

Full Article

Should I Buy or Finance an Aston Martin Valkyrie?

We’ve all been there. £3 million burning a hole in your pocket and a track-going version of Aston Martin’s latest hypercar sat in front of you. But as a shrewd, savvy business-type, you know that dropping £3m in one go on a 1,100bhp car could be considered a questionable, perhaps even ‘baller’ move. But what about putting it on finance?

Published on 13 Apr 2018 by Jamie Mackenzie Smith

Full Article

How to Build Credit History Without a Credit Card

When it comes to the best way to build up a credit history, conventional wisdom is to take out a credit card and use it for everyday purchases, while paying it off (on time) at the end of every month. There’s plenty to support this advice too, as a credit card allows you to spend as much or as little as your limit will allow, while building a history in a reasonably short amount of time.

Published on 26 Mar 2018 by Jamie Mackenzie Smith

Full Article


We have loads of great customer reviews