Summer hols culled as debt worries grow

Over half of Britons will cut back on spending on their summer holidays this year as debt problems continue to mount, a new study has found.

Research from FairFX revealed that 57 per cent of Brits will be forced to cut back on spending - with many cancelling their break away altogether as financial stresses continue to mount.

A total of 55 per cent of respondents plan to curb foreign expenditure because the cost of living back home is too much for them and outgoings have increased drastically over the past few months.

Stephen Heath, chief executive of FairFX, said: "Brits have been forced to slash their holiday spending as the credit crunch and the hefty rise in the cost of living hits them hard in the pocket.

"Unless conditions change holidaymakers are planning to spend just £460 each on what should be the main break of the year."

According to Credit Action, the UK`s total personal debt increased by 8.9 per cent in the 12 months to the end of March.