02/07/2003

The school break during July and August is for many working parents the most expensive time of the year, with on average an extra £1150 having to be found by families with a child needing day-care. The cost of childcare makes up the bulk of this extra money, with entertainment to keep children amused accounting for the rest.

For many families, this extra money required will be too much and they will cover the difference by going overdrawn. However, overdrafts are often the most expensive form of borrowing with average interest rates across the traditional high street banks of 15%.

The following table shows the cost of running up £1850 worth of debt and repaying it over a six month period. £1850 is the average additional cost a full-time employed parent with two children is likely to have to find over the summer holiday. 

Egg Card’s latest offer of 0% interest on balance transfers and new purchases until 1st January 2004, means that for parents looking to spread the cost of the holiday period, it is the cheapest way for them to borrow.

Provided by Egg