1.8 million people facing summer holiday debts

Research from insolvency trade body R3 suggests that 1.8 million Brits took on debt to pay for their summer holiday this year. Many people have now come back from holiday to face months of debt repayments.

The research finds that the average amount of holiday debt is £1,581, which is 40% more than last year. And this amount of debt will take the average indebted holidaymaker nine months to repay.

Younger people were more likely to borrow to pay for some time 'in the sun'. As many as one in ten young holidaymakers borrowed money to go on holiday - that's 10% of 16-24 year-olds - this year.

Many people have less money because of inflation, Government austerity measures and stagnating salaries - it's often tempting to borrow money to 'get away from it all'.

However, R3 President, Frances Coulson, warns:

"Spending today and repaying tomorrow can have consequences, with more than a quarter of insolvencies occurring as a result of individuals living beyond their means."

She also warns that the economy is not out of the woods yet, adding: "Household budgets will come under increasing strain over the coming months."