Britons are blowing roughly £50 billion worth of their hard-earned savings a year on holidays, new research has revealed.
According to a study by Abbey Savings, more than a quarter (26 per cent) of Brits believes that the best way to spend excess money is to go on holiday rather than save it, risking the possibility of future debt in the process.
Abbey found that people spent an average of 10 per cent of their net income - equal to around £1,650 per year - going on vacation each year, which equates to total holiday spend of £81 billion by the UK’s adult population each year.
But 62 per cent of Britons admitted to using their savings to pay for these holidays – equal to a whopping £50.4 billion.
The high street lender warned that consumers could be losing out on interest as high as £3.2 billion as a result of not investing in a high paying savings account .
Additionally, the study worryingly revealed that despite the credit crunch, 46 per cent of Britons did not list saving for the future amongst their top three priorities, while going on expensive holidays is still deemed a top priority by 33 per cent.
Commenting on the findings, Reza Attar-Zadeh, director of savings and investments at Abbey, said: "If people cut back a small proportion of the amount they spent on holidays and kept their savings, this would make a real difference to their financial wellbeing."
"With savings rates at excellent levels, there has never been a better time to save for the future."
Chris Eagle, commercial manager at Credit Choices, added that the trend for splashing out on holidays could be reversed by next summer.
"The reality of the credit crunch and high inflation will finally hit home this winter for those who persist in burying their head in the sand," he commented.
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