Home » Finance » Personal Finance

Tourists Face Extortionate Charges

Aug 18, 2007
Millions of Britons set to go abroad this summer may face financial problems before the implementation of caps on mobile phones costs, a price comparison website has claimed.

According to moneysupermarket, some six million tourists travelling to the United States and Europe over the course of July could have their attempts at debt management squeezed as telecoms providers delay limiting their tariffs. Despite the European Parliament voting that a maximum of 33p per minute should be charged for calls made within the European Union as of June 30th, the website suggests that companies are not legally required to integrate this into their call packages until at July 30th.

However, moneysupermarket went on to claim that this could be "spun out" as late as September 30th. Consequently, tourists could witness call costs at a total of 6 million pounds per minute before the cap is rolled out in full, a figure which could impact upon many consumers' ability to make repayments on personal loans, credit cards and overdrafts.

Rob Barnes, head of mobiles for the price watchdog, said: "In the meantime, costs for Brits using mobiles abroad are amongst the highest in Europe, so travellers should look at ways to cut costs. Contact your network directly to see what they can offer you." He added that telecoms providers are looking to "maximise their profits" by not introducing the cap until they are absolutely required to do so. As a result, Mr Barnes claimed that many tourists are "in danger of being stung by extortionate roaming charges during their summer break".

Overall, those customers on a pay-as-you-go deal with mobile network 3 are reported to face the most expensive charges in Europe with costs of 1 pound per minute. Meanwhile, tourists using O2 pay-as-you-go who are travelling outside of Europe currently have a "staggering" charge of 1 pound 49p a minute. Research from the price comparison website also indicated that T-Mobile holidaymakers are currently on the cheapest rates to either make or receive calls in Europe. However, with a tariff of 55p a minute this was still reported to be 66 per cent higher than the new capped rates.

To help combat financial problems caused by phone charges, Mr Barnes recommended that those who go away once or twice a year on holiday to consider their network's "roaming bundles". Meanwhile, "frequent travellers" should look to purchase a global Sim card as the devices allow consumers to make calls from countries across the world and are a "cost-effective option".

The announcement by the price comparison website could well be indicative of increasing debt management difficulties caused by going on holiday. According to research by financial charity Credit Action, about 12 million Britons claim that they are willing to take on debt through avenues such as credit cards and personal loans to pay to go away. Some six per cent of those surveyed added that while on holiday they frequently go into the red. Meanwhile, consumers were reported to be saving to go abroad (49 per cent) rather than putting money away for their retirement (46 per cent), which consequently may lead to debt management difficulties in later life.
About the Author
Abbi Rouse writes for Essentially Home Loans where visitors can apply for secured loans online, we also specialise in bad credit loans for UK residents. Visit Today: http://news.essentiallyhomeloans.co.uk
Rating:
Please Rate:
(Average: Not rated)
Views: 133
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources