TIP TWO

Watch how you get cash when you are away. Using a credit card in an ATM machine can be a financial disaster. Interest will start clocking up immediately, as there are rarely interest-free periods on cash withdrawals. The rates will be far higher than on purchases – up to 24 per cent compared to just 9 per cent on many cards, according to researcher Moneyfacts.



And you will also be hit with extra fees or loadings for using overseas ATMs – up to 2.65 per cent for credit cards used in Europe and 2.75 per cent elsewhere in the world, according to Moneyfacts. The bad news is that debit cards can also bring nasty surprises. Many card firms charge £1 or £1.50 every time you use a debit card in an overseas ATM and some charge £2.50. They may also add an extra loading to the amount you withdraw.