UK households are being given a stark financial warning as the festive season approaches: stop using your debit card for one specific type of major purchase.
The Holiday Booking Warning
Personal finance group Money to the Masses has issued urgent advice for anyone planning to book a holiday in the New Year period for travel in 2026. The clear recommendation is to avoid using a debit card to pay for holidays and to consider a credit card instead.
The group explains that a credit card can allow you to spread the cost of a significant purchase like a holiday over a much longer period, sometimes up to three years. While standard cards offer a grace period, clearing a large balance in full before interest charges apply is often not feasible.
Benefits of Using a Credit Card
The guidance suggests that a 0% purchase credit card could be a smarter solution. This type of card provides a lengthy interest-free period to pay down the debt, meaning you could split the cost of a holiday, a sofa, or a washing machine over several months without incurring interest.
Furthermore, financial data provider Moneyfactscompare highlights the crucial Section 75 protection under the Consumer Credit Act. This legal safeguard means your credit card provider is jointly liable if something goes wrong with a purchase costing between £100 and £30,000. This protection is a vital safety net if an airline collapses or travel plans are cancelled.
"You have likely heard at least one horror story of someone losing thousands when an airline goes bust," Money to the Masses adds. "One way to avoid being a victim... is to pay for your holiday or travel with a credit card."
Additional Perks and Final Advice
Using a credit card for holiday bookings can also unlock additional rewards. If you hold a reward credit card, you could earn cashback, air miles, or other benefits on your spending.
The core message from finance experts is clear: for significant upcoming travel bookings, a strategic switch from a debit to a credit card can offer superior financial flexibility, powerful consumer protection, and potential rewards. The advice is particularly timely for those planning to secure their 2026 holidays in the upcoming January sales period.
