'Shop around for credit cards to avoid holiday hangover'

People should avoid a holiday hangover this year, according to one website.

When it comes to shopping abroad, uSwith.com has advised consumers to shop around for the right credit or debit card in order to save money on unnecessary charges.

According to the price comparison site, nine banks charge an average debit card transaction fee of £1.19 for overseas purchases.

Meanwhile, an average fee of three per cent for using their cards on holiday is adding a cumulative £686 million to charges on credit card bills.

Mike Naylor, personal finance expert at uSwitch.com, commented: "The ever-increasing plethora of overseas fees and charges on debit and credit cards could leave consumers with a holiday hangover if they don't do their homework before boarding the plane."

"Any consumer who holds a debit card with a bank levying these charges should think carefully before handing their card over the counter whilst abroad."

Mr Naylor added that on a two-week holiday it would not be unheard of for people to pay for 14 meals on their debit card, which could accumulate charges of £1.50 per use as well as the foreign exchange fees.

According to the website, some five million Britons spend more than they earn.