When you are abroad there are ways to make sure you don’t pay large on exchange rates and make the most out of your holiday budget. There are some tips you can follow to make this easier.
Always pay in local currency
When paying on a card machine or withdrawing from an ATM you will have the option to either pay in the local currency or to pay in pounds. Always select local currency as this will lower the exchange and cost you less money.
Take a small amount of cash in the local currency
Most places now will accept card payments and so there is no need to take out your whole budget in cash to take with you. This will lower the exchange rate when converting the money and will make sure you don’t go home with left over cash which you will receive nothing back for.
Take a small amount of cash just in case as small towns, café and shops still may only accept cash.
Get a travel friendly card
Getting a card that has a travel friendly feature will be an enormous help. These can have no monthly fees, will have a mobile app to manage your money easily no matter where you are and you can transfer money into it whenever you need, and there will be no or low exchange rates when using these cards. This will save you money when you are on holiday and you will be able to pay using your card with no stress.
Travel friendly cards include;
Revolut
Chase
Starling
Monzo
These cards are a selection of choices so you can pay the bill on your holiday without worrying about any conversions. They will show you on the app how much your bill was in the local currency as well as in pounds so you know exactly what you are spending.
Using a credit card could cost you
When you have a large payment such as your accommodation cost when you arrive it may be handy to pay on a credit card and make use of the protection features. However, when using your credit card abroad you will often be paying interest as well as when you withdraw from an ATM, so make sure you follow the tips above and avoid paying extra.
