August 10, 2006

Credit card holders planning a foreign holiday this year may well have to keep an eye on how much they use their plastic, owing to the hidden charges that can sometimes arise.

Most providers charge a fee for usage in another country, as well as an amount for withdrawals that are made from ATMs while abroad. And these charges will need to be considered even more than usual based on the results of a recent NatWest survey.

According to the bank, a typical family on holiday can expect to pay around £1,850 on their kids alone.

This cost can also vary greatly depending on where the family is from, with parents in central Scotland facing a potential cost of £1,625 per child for a two-week holiday, compared to a possible expense of £825 for a family from the Midlands.

One of the main costs that parents could decide to use their credit card for is food. The NatWest survey reveals that the Scottish family could expect to pay £500 on feeding their young ones, while the family from the Midlands could pay around £100.

Robin Cockburn, head of NatWest Travel Money, said: "Our research shows that where you come from and where you go to can make a huge difference in the cost of taking your children abroad."

Many financial service providers offer travel money packages, such as Natwest's facility, which allows foreign currency to be ordered commission-free.