Credit Crunch Holiday
At this moment in time, credit is becoming increasingly harder to find, as fundamental living costs spiral upwards, we Brits are now taking stock and looking at ways we can save. So what does that mean for holidaymakers looking for a cheap getaway? In the current climate, can we actually afford a credit crunch holiday?
Lenders have tightened up their score cards, increased their interest rates on unsecured loans and credit cards, so somebody looking to ‘borrow’ money for their holidays may find it difficult as credit approvals fall.
The recent economic downturn leads towards more of us being unable to afford a holiday abroad. As well rising living costs, many businesses are also beginning to feel the pinch which leads to job cuts and rising unemployment. A holiday is one of the things we most look forward to, but is it a necessity at a time when the financial crisis has many of us in turmoil?
The recent collapse of XL Airways shows that it’s not only the consumers who are finding it tough. The holiday packager was the third largest in Britain and went into liquidation when they couldn’t get any more funding. Majority of the blame was apportioned to high fuel costs coupled with the recent downturn in the economy.
"As the travel industry matures in Europe, there was always going to be pressure on those operating in the mid-market," said Lastminute.com chief executive Ian McCaig.
A statement on the XL group's website said: "The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding."
XL chairman Phil Wyatt was said to be “totally devastated by the holiday firms collapse. He said, "We've made every effort, myself and my fellow directors, to find new funding for the business - and it's a very sad day for me personally. I am totally devastated," XL chairman Phil Wyatt said.
David Clover, a spokesman for the CAA, said it was making arrangements to help customers of the four tour companies within the XL group.
"In respect of people who are currently abroad, we're making arrangements and working very closely with the travel industry to organise repatriation flights.
"Clearly though, with XL Airways no longer operating, we’re having to bring in substitute aircraft to bring people home."
If you are looking to fund a trip abroad or looking to book a holiday for next year, then JSTFinancial.co.uk may be able to help by providing an unsecured personal loan.