It is advised that before you leave changing your money until the last minute, you should check your bank for offers with preferential rates and shop around to see where you can get the best deal on the high streets or even online.

Much more sensible than leaving your foreign cash until the last minute is to stay alert to good rates. Then, if you are using savings or a personal loan to pay for your holiday, exchange your cash at that time. If you will be taking several European holidays then you can save on transfer fees by exchanging one sum when rates are most favourable.

Besides cash currency exchange, you will want to check the charges on your credit cards and debit cards as well. You should make yourself aware of any charges that you will incur when you use either you credit card or debit card overseas. You may also want to phone your credit card company or bank to inform them of your holiday and that the card will be used in foreign countries. This way you can avoid the possibility of your account being frozen due to suspicious activity.

More realistic than using a credit card abroad, with all the fee penalties and high rates charged, would be to borrow the money in advance with a loan. If you are paying for your holiday six months or a year in advance, you can benefit from early booking fees, and will have paid off a good portion of your holiday before you leave, rather than coming home to a nasty credit card bill after your chilled out holiday.

If you must use a card whilst away then using the right credit card is important. Not only do you want a card that will charge less transaction fees, but also you will want a company that will also charge a lower rate of interest. You will also want to avoid any cash withdrawals from your credit card account, as the interest charges will start immediately and the interest rates on cash advances are extremely high. So before you go on holiday you should do your research to ensure you receive the best prices.