Overspending on holidays is causing a lot of problems for Britons upon their return home, according to National Savings & Investments (NS&I).

The financial services provider has released statistics showing that a lack of budget planning is leading to nasty surprises, with 26 per cent of respondents to its quarterly savings survey stating that they were alarmed at how much they had spent on their holidays. According to the group one fifth (20 per cent) of holidaymakers do not set out any plans for limiting spending before they travel, while 61 per cent said they overspent while they were abroad.

Of those who said they could not stick within their budget, the average amount they exceeded it by was said to be 133 pounds. However, many felt the financial indiscretion was justified, with nearly half (49 per cent) saying they did not mind overspending because they had worked hard for their holiday and deserved to enjoy it. A further 30 per cent said they got caught up in the excitement while overseas and splashed out on various items without thought to the financial consequences. Nearly one in ten (eight per cent) said they got caught out by exchange rates and had trouble working out precise levels of spending while they were outside of the UK. For six per cent of people, overspending was attributed to a general lack of competence in managing their money and being realistic about spending.

Failing to stick within budgets could end up having costly consequences for many consumers, with holidaymakers found to commit substantial amounts of money to their holidays. According to NS&I, seven per cent of people spend 2,500 pounds or more every year on taking vacations. For those who are planning a trip away in the summer months but are finding it difficult to find the funds to pay for it, taking out a low rate personal loan may prove an attractive option. In taking out this type of loan, people may find they are able to purchase those little extras that make a trip away truly memorable.

Indeed, the NS&I study found that many people find themselves spending substantial sums on unplanned extras such as adventure sports activities. Nearly a third (31 per cent) of all respondents to the study stated that they had indulged in this type of pastime on the spur of the moment. Elsewhere, 57 per cent of people said they overspent on items such as gifts, souvenirs and clothes, while 23 per cent had neglected to factor in costs such as travel to and from hotels and other destinations.

Commenting on the findings, the group stated: “As soon as the holiday begins to recede into a happy memory, people have to face the consequences of lack of planning. Nearly half (47 per cent) of people admitted they did not look at how much money they had spent while they were away, so it is not a surprise that over a quarter of holidaymakers (26 per cent) said they were alarmed at how much money they had spent. A fifth (20 per cent), however, said they were never surprised to find out how much they had spent on holiday, as they never even set a spending limit for when they were away.”

For those who have been strapped for cash since returning home, a personal loan may be useful in making sure financial contributions are met and debts do not spiral out of control.

The findings follow research published by M&S Money, which found that many Britons are now choosing to plan their holidays without expert assistance.

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