Holidaymakers taking on less debt by `staycationing`

Almost four in ten (38%) Brits aim to spend less money on holidays this year, according to a new survey from insolvency trade body R3.

More than half of those aiming to spend less have also decided not to go abroad in order to reduce the overall expense.

R3 Vice-President Frances Coulson said: "The current trend for staycations has been around for a few years, but the research highlights that the staycation`s popularity has grown as a result of necessity, rather than choice. Quite simply, many people can no longer afford to spend as much on their holidays as before."

A debt expert at Gregory Pennington commented: "The financial climate over the last couple of years has led a lot of people to reassess their finances. For many, this means cutting back on the non-essentials, such as holidays.

"It`s common for people to take on debt to go on holiday, and it may well be that many people have simply decided that they want to stay in the black this year."