With summer in full swing, Brits are being urged to keep a closer eye on their finances, as credit reference agency Equifax UK reveals a rise in debt levels and warns on the heightened risk of travel-related scams.

Equifax is warning consumers to avoid financial overstretch and stay alert to holiday fraud, amid the typical summer spending surge. The call comes as UK credit card debt hit £71.2 billion in December 2024, a 5.6% increase year-on-year¹, potentially signalling growing financial pressure for many households.

With peak travel season underway, Equifax is also highlighting common travel scams, including fraudulent booking websites, ATM skimming, and overcharging by taxis, all of which can put a dent in your holiday budget and potentially harm your credit profile.

Craig Tebbutt, financial health expert at Equifax UK, said: “Summer holidays are a fantastic time to relax, make memories and enjoy time with loved ones, these times are even more enjoyable when you know you have budgeted and spent wisely. With debt levels rising, keeping your credit utilisation low and staying on top of repayments will mean you can build and reflect on those wonderful summer holiday memories without incurring long-term financial strain.

“Holidaymakers should also stay alert to fraud. Whether you’re booking accommodation or withdrawing cash abroad, scams like fake websites or card skimming can quickly unravel your plans – and damage your finances. With financial planning and increased vigilance, holidaymakers can have a fantastic summer while keeping costs affordable and avoiding any overstretch that may cause financial difficulty in the future."

Top tips from Equifax UK to ensure your finances don’t get burnt this summer:

- Always book through a reputable provider

Whether you’re booking holiday accommodation, flights or holiday packages, make sure that you’re doing it through a trusted company that won’t mis-sell to you or use your personal information for fraudulent purposes. Ensure that all payments are sent via secure methods.

- Take advantage of travel benefits

Your credit card provider may offer travel benefits or perks such as cashback on travel purchases, car rental coverage, or free checked bags. It’s useful to research this before your trip to help shape your budget.

- Tell your bank and credit card provider that you’ll be away

If you’re using your debit or credit card abroad, let your card provider know in advance when you’ll be away. This way, they can also monitor your accounts for any suspicious activity.

- Check your bank’s transaction fees abroad

Remember, if you withdraw cash from an ATM or buy foreign currency whilst abroad, your bank may charge you a transaction fee. Before your trip, check with your bank if any fees apply abroad to avoid any surprises you haven’t budgeted for. When withdrawing in large and regular amounts, transaction fees can quickly blow your holiday budget. There are a number of debit cards now available which have zero transaction fees abroad up to a certain amount, so it is always worth looking into your options before you go away.

- Be cautious about using credit abroad

It is important to keep track of your holiday spending, so you don’t go overboard. Using cash or prepaid travel cards can be a good idea when you’re abroad as they help you stick within a planned budget and reduce the chance of financial overstretch. If you do use a credit card abroad, make sure to make the repayments once you get home, as regular missed credit card repayments could affect your credit score. Additionally, always double check your bank statements and receipts to make sure that no-one’s made any unauthorised purchases using your card, or that you have been overcharged whilst using it.