The Association of British Travel Agents (ABTA) has found that, despite the economic downturn putting a strain on people’s finances, our holiday spending starts before we’ve even left the country.

It was found that British travellers spend an average of £532 each before their holiday, on items such as travel services and holiday products.

A collective £31.2 billion is spent each year by those of us going on holiday, about the same amount which is spent abroad – a collective £31.6 billion.

“Part of the excitement of going away on holiday is about the preparation,” said Victoria Bacon, Head of Communications at ABTA.

“For many holidaymakers, splashing out some of their budget on a new summer wardrobe, buying a few new books and magazines and getting their duty free at the airport are all part of the experience,” she added.

The research found that the biggest pre-holiday expense is clothes and shoes, with many of us splashing out on a holiday wardrobe before go.

Holiday clothing accounts for 1.83 billion each year, which is closely followed by duty free spending in the airport, at £1.77 billion.

Other big expenses include cameras and other digital accessories, with Brits spending an average of £759 million. This is followed by spending on magazines and books at £543 million, and toiletries and pharmaceuticals at £529 million.

“Add to this all of the jobs that are supported in travel agents, at airports and in shops and it is clear that the outbound travel sector makes a very important contribution to the UK economy,” said Ms Bacon.

“This demonstrates conclusively that going abroad on holiday is good for British business,” she added.

ABTA used the research to put forward the case for an end to Air Passenger Duty (APD), which it said is destroying the British aviation industry.

“For too long it has been assumed that by going abroad on holiday, money is being taken out of the UK economy,” said Mark Tanzer, ABTA Chief Executive.

“This report proves conclusively that the foreign holiday market makes a huge contribution to the UK economy and is an essential component of a healthy and dynamic UK economy.”

If you are planning a trip abroad this summer, the chances are you’ll be doing some pre-holiday spending. But you can keep costs down while abroad by using a prepaid travel money card such as Caxton FX, Fair FX and  myTravel Cash to name a few.

By using a prepaid card, you’ll be able to avoid expensive bank fee while abroad and also benefit from a good exchange rate.

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The Financial Ombudsman Service, the independent watchdog for the finance industry, has said it handles as many as 100 complaints per week from customers who’ve been effectively ignored by their credit card company.

Credit card customers should be protected by Section 75 of the Consumer Credit Act, which is designed to protect card users financially.

Section 75 was once a little-known regulation. But as people’s credit card usage has increased over the years, so has knowledge of its benefits.

“It’s more important than ever that people know their rights if you use credit and something goes wrong,” said Chief Ombudsman Natalie Ceeney.

In the last five years in particular, the use of Section 75 has shot up. But where credit card companies would once payout without question, evidence shows that more and more are taking a stricter line when it comes to refunds.

Many customers have complained of receiving a standard letter from bank staff rejecting their claim outright, while the Financial Ombudsman Service has seen a spike in complaints in the last few years.

Section 75 states that if a consumer pays for something using their credit card, the credit card company is liable if something goes wrong with the purchase.

This can be anything from faulty goods, to the company selling you the goods going out of business. To claim on Section 75, the consumer must have spent a minimum of £100 and a maximum of £30,000.

“Credit cards offer a greater level of protection to consumers than payment by cash or cheques – meaning that purchases can be made with much greater confidence,” said Craig Jones, spokesperson for the UK Cards Association.

The law can be very useful to shoppers and card users, as it prevents them for paying off a debt on something that they either did not receive or was faulty.

Customers are now being urged to know when Section 75 applies, as it does not protect you should you change your mind about a purchase.

“Section 75 gives you great and unique protection,” said Doriena Koldenhof, of the UK Cards Association, the trade body for banks, says:

“But the law in this area can be complex and each claim has to be assessed on a case-by-case basis,” she added.

An alternative to credit cards is a prepaid card. These offer many of the benefits as a credit card, but with added fraud security as they are not tied to a bank account.

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With the UK now officially back in recession, many families are feeling the financial squeeze more than ever. While people are making cutbacks in a number of areas, the family holiday is a priority that few people are willing to give up.

It has been found that three out of ten parents are planning to take the family holiday during term time – meaning that children run the risk of falling behind on schoolwork.

This is despite the fact that they face a fine for taking their children away from school, which has gone up by 60% in the last year.

Fines were introduced in 2004, and mean that parents face a charge of £60 if they are caught – a figure which rises to £120 if the fine is not paid within 28 days.

Far from acting as a deterrent, the fines appear to be doing little to prevent families from holidaying during term-time. The number of parents taking their children out of school has gone up from 7% in 2004 to 21% in 2012.

“The difference in price for taking a trip during the school holidays and during term-time is huge,” said Selwyn Fernandes, managing director of LV= travel insurance, which carried out the research.

“It is not surprising that so many parents are willing to risk a fine of £60 when they can save ten times that by holidaying outside of the peak season.”

Analysis of family holiday prices has revealed that parents can end up paying almost 50% more for a family getaway during the school holidays than in term-time.

The cost of a week’s family holiday to Florida is an average of £2,619, whereas during the school holidays it is an average of £3,824 – a difference of 46%.

Of those planning on taking their children out of school for a holiday, 57% said it was to save money while 32% argued that they could only afford a holiday during term-time.

The cost of a holiday is rising all the time, but there are a number of ways to save money while abroad. One of the best is to invest in a prepaid travel money card.

These will allow you to access money and make purchases in a safe and secure way, while also bypassing expensive bank charges for foreign card use.

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It was found that the average male credit card user will spend 15% more with his plastic than the average female card user will.

The research also revealed that men spend more than women on typically male things, such as cars, sports and hardware.

Conversely, women were found to spend more than their male counterparts on typically female things, like clothes, healthcare and pharmaceuticals.

The gender-stereotypical spending is an interesting finding from the research, which was conducted by the Card branch of Santander.

It found that, when it comes to credit card spending, men are all about their cars. Men spend an average of 113% more than women on car rental with their credit cards.

Other car-related spending included at car accessory outlets, where men spend 108% more than women; and repair shops, where men spend 68% more than women.

It was also found that men spend more on keeping their car running, spending 63% more than women on credit cards at the petrol pumps.

Other areas where men out-spend women with their credit cards include on sporting events, hotels, dining at restaurants and drinking in bars.

But there are plenty of areas where women outdo the men on credit card spending. In true gender conformation, credit card spending is all about shopping for women.

The research found that women spend 83% more than men with their plastic in clothes shop, while also spending 38% more at department stores.

As well as dressing well, women also want to look and feel good. It was found that they spend 87% more than men at pharmacies, and 20% more on health care.

But it’s not all clothes and home furnishings; it seems women are taking on the weekly shop – spending 12% more in supermarkets than men.

“It’s revealing that people seem to conform to gender stereotypes in their credit card usage, with women using their cards more in clothes shops and department stores and men spending more on their vehicles, in sports shops and in bars and restaurants,” said Adam Mussert, from Santander Cards.

Credit cards can be useful for consumers, with some offering a range of rewards. But they can also be a dangerous spending tool, forcing people into heavy debt.

A prepaid card is a far more sensible option for both men and women. By loading a set amount on a prepaid card, there is no danger of over-spending or acquiring debt.

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G20 finance ministers on Sunday in Mexico told Eurozone leaders to boost their rescue fund before they can add to the IMF resources destined to help Europe. For his part, European Commission’s vice-president Olli Rehn said in a press conference that the G20 welcomed the euro are agreement on a second Greek bailout deal. “G20 ministers underlined this bailout can put Greece on a sustainable path”, he said.

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The new competitions are being launched based on the success of the resoundingly successful “Tweet to Win an iPad Contest with Prepaid365″ that we ran last year but this time there are prizes galore, with Daily winners winning free prepaid cards with spend money too.

Are you excited yet? Well, we are too and here is what you need to do.

• Competition 1: Tweet to WIN a FREE Prepaid Card and Spend Money – Daily Competition with additional Monthly Surprise Draw – Click here
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• Competition 2: Tweet to win an Apple iPad2 with Prepaid365- Click here

Get in it, to Win it! All the best from the Prepaid365 Team!

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