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Spend some time to save some money

In these days of low-cost air fares and bargain hotel deals, paying for your flights and accommodation is the easy bit.
What can be more painful are the bills you run up in the pursuit of pleasure.
Nobody wants to skimp while on holiday, and – unless you are really disciplined, allowing a set amount of “spends” and budgeting so they last the fortnight – chances are you’ll still be paying for your fun in the sun long after your tan has faded.
Unless you’re canny.
For starters, shop around before you go to make sure you’re getting as many lira for your money as possible.
Adam Aiken, editor of personal finance website MyMoney24.co.uk, says it’s worth spending a little time to avoid spending a lot of money.
“Just a few minutes making some online comparisons will show there is a world of difference between the best and the worst exchange rates,” he says.
“If you are changing only a small amount of cash it might not be worth it, but if you are changing several hundred pounds into lira, a little effort can pay big rewards.
“Also, it’s important to remember that exchange rates move on a daily basis. There are some providers who almost always offer the best deals, but don’t assume that the best place to go one day will be the best place to go the next.”
Meanwhile, be wary of “commission-free” claims. A money-changer might not add a fee to the transaction, but this is a false saving if the rate it is offering is poor. Always ask yourself how many lira you are going to get for your pounds, once the rate and any commission have been taken into account.
You might also find that the best rates are available in Turkey, so you could change a little cash in the UK before flying out and change the rest after you’ve arrived.
Of course, once you’re there, it’s important not to waste precious pennies that could otherwise be spent on a few beers, a nice dinner, a few beers, a day out, a few beers . . .
Few people take travellers’ cheques away these days. They beat cash hands down for security, but apart from in the States – where you can use them to pay in shops and restaurants – they have to be cashed, and that can be a pain.
Some people take cash, but carrying around large amounts of readies or leaving them in hotel rooms or apartments can be a security headache.
Many others use their plastic to take cash out at an ATM. But while this is simple and safe, make sure you know the difference between credit and debit cards when it comes to withdrawing cash.
Unless it’s an emergency, you should never withdraw cash on a credit card. A well You’ll probably be hit with a handling fee, but more importantly you’ll also be charged interest from the moment you get the cash.
If you need to make a cash withdrawal, use a debit card to access your current account. You might pay a fee for the transaction, but you won’t be stung with a hefty build-up of interest charges.
“Save the credit card for restaurants and shops,” says Adam.
“If you use it just for those transactions, you’ll get an interest-free period before you need to pay your bill.”
The other thing to know is how much – if anything – your credit card issuer will charge you per transaction.
“If you’re canny, you’ll use one of the few cards that doesn’t add foreign usage fees every time you use it,” says Adam.
“At the moment, various cards from the likes of Halifax and Santander offer fee-free foreign usage – but again, don’t forget that you shouldn’t use those cards for cash withdrawals.”
When you do pay a bill with your credit card, you might find you get the option of paying in sterling or in lira. Always plump for lira because the conversion rate your bank will use will be more competitive than that provider by local retailers and restaurateurs.
(Of course, it can be better all round to pay with a fistful of tenners. It often works out that this gives you a discount.)
Every pound saved on commission, interest, bank charges and other fees is another pound towards your next holiday.
So while it’s second nature to take precautions against getting burnt by the sun and stung by creepy crawlies, it is just as important to avoid the same dangers from your bank.


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