One in Ten UK Consumers to Put Entire Summer Holiday on Credit
● 10% of UK consumers plan to cover their entire 2025 summer holiday with credit, risking potential long-term financial strain
● For families, one in five parents (20%) are planning to use credit to fully or partly cover their trip
● Younger consumers are most credit-reliant for trips abroad, with 14% of 18-24s paying for their entire holiday with credit
With UK Holidaymakers heading on their summer breaks, new research from global insights company TransUnion reveals that one in 10 (10%) UK adults will pay for their 2025 summer holiday entirely using credit – including credit cards and Buy Now, Pay Later (BNPL). Meanwhile, 7% are using credit to partly fund their 2025 summer getaway.
In fact, 2% of UK adults admit they’re still paying off their 2024 summer break, while another 2% didn’t borrow for last year’s trip but now say they wish they had.
Madhu Kejriwal, CEO of TransUnion in the UK and Europe, said: “These findings highlight the growing role of short-term credit in making holiday plans a reality. Clearly, responsible credit use can help consumers to afford or spread the cost of life moments, like holidays. However, consumers should be aware of the risks of longer-term financial pressure and ensure they only make credit arrangements than they can afford to repay.”
With household budgets currently under strain and the average cost of a holiday for a family of four standing at £3,628[1], many families are relying on credit to cover the cost of their trip. TransUnion’s research found that one in five parents (20%) are planning to pay for their 2025 summer holiday either entirely or partly with credit.
As younger consumers face financial pressure due to cost-of-living pressures, 18-24-year-olds are the most likely age group to turn to credit or BNPL for their 2025 summer holiday, with 14% planning to fund their trip this way.
Londoners are the most likely to use credit to entirely fund their 2025 summer holidays, with 17% planning to do so – more than four times the rate in Wales, where just 4% expect to rely on borrowing. This trend reflects the higher cost of living in the capital, where rising costs and everyday expenses are putting added pressure on household budgets. Northern Ireland (14%) follows closely behind London, while 10% of respondents in Scotland, the Midlands and Southern England say they’ll use credit to pay entirely for their holiday.
TransUnion shares tips for holidaymakers using credit:
● Read your credit agreement carefully before booking a holiday – Check the terms and conditions of your credit agreement or BNPL loan thoroughly, including repayment deadlines and any late payment fees. Missed or late payments, even on small amounts, can be reported to credit reference agencies and negatively impact your credit report, potentially affecting your ability to borrow in the future.
● Keep an eye on all credit purchases – Credit for flights, accommodation, and extras can quickly add up when planning a holiday. Keep a clear record of how much credit you’ve taken on and set reminders or enable automatic payments to avoid missed repayments and additional fees.
● Monitor your credit report regularly – Keeping an eye on your credit report can help you stay in control of your borrowing and understand your financial standing before and after a holiday. You can check your TransUnion credit report and score for free through providers such as Credit Karma, MoneySuperMarket, or TotallyMoney, or get your free statutory credit report directly from TransUnion. Many high street banks and lenders also offer free access through their apps or websites.
● Don’t ignore bills if you're struggling – If you find yourself struggling to pay off holiday-related debt, don’t ignore bills or letters about money you owe. Contact your lender for support or seek free, confidential advice from independent charities such as StepChange Debt Charity or National Debtline.
NOTES
[1] NimbleFins – Average Cost of a Holiday Abroad 2025
