New research by MoneySuperMarket reveals that Brummies are borrowing more than other locations to pay for their holidays, with those from Birmingham taking out over £7.5 million in holiday loans since 2016 - nearly £3,000 on average per person.
The study shows that almost half (48 per cent) of Brits are willing to borrow money in some capacity to go on holiday, with holiday loans now being the third most common way to fund a trip after saved cash and credit cards.
Millennials are most likely to borrow to fund their travels, with over a fifth saying that they would consider a holiday loan. Two in five millennials who said they would take out a holiday loan would be open to using it to upgrade their hotel, compared to only 12 per cent of those aged 35+, while a quarter would use a loan to upgrade to an all-inclusive holiday.
When looking at the length of the loan, 44 per cent of Brits expect to take less than a year to pay off their debt. This figure rises for millennials, with over half (53 per cent) believing that they’ll be able pay off their holiday loan in less than a year. In reality, the average term is nearly two and a half years (29.3 months).
When it comes to those in the Midlands who are considering a holiday loan…
26 per cent would go abroad rather than staycation
14 per cent would upgrade to all-inclusive
13 per cent would go up one or more stars in accommodation
14 per cent would extend the length of their stay
11 per cent would add excursions or activities
Those in the Midlands could be spending nearly three times as much on their holidays than they initially predicted. The research found that on average, Midlanders are willing to borrow £1,100 to fund a holiday. However, the actual average holiday loan amount according to MoneySuperMarket is just over £3,000 – meaning that a large percentage of holidaymakers could be spending more than anticipated.
