HSBC issues holiday warning to customers who have over £1,000 in bank account

HSBC UK has warned account holders are spending £1,000 on holiday EXTRAS. The average customer spends £250 per person more on average when abroad than at home, with the UK branded a nation of "splurgers" by the high street bank.

Jo Hemmings, Behavioural Psychologist, commented: “Our holiday mentality which encourages us to spend much more than we would at home is down to three main factors. Simply being out of our usual daily routine contributes to a sense of relaxation and reward, stimulating our feel-good hormones of serotonin and dopamine and reducing our stress hormone, cortisol, making us more likely to spend money on clothes, dining out and new experiences.

“Holidays are also associated with special occasions and escapism – whether that’s a birthday or an anniversary, the arrival of warm weather or simply the holiday itself which we have anticipated and saved for, enables us to justify spending more money than usual. We are also less inhibited on holiday, so we feel less constrained by our usual financial mindsets and the sense of spending more on immediate pleasures rather than deferred rewards – known as temporal discounting – is also heightened.”

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Jo said: “There is an innate pressure to conform to holiday expectations and a social comparison where we see other people seemingly spending freely. When we get back to our daily routine, we may feel we haven’t exercised the financial control which would have allowed us to still have a great holiday, but on a more appropriate budget.

“This can lead to feelings of shame and regret about our behaviour and we can be reluctant to share those with our loved ones”. HSBC UK’s Head of Everyday Banking, Pella Frost, said: “We all like to splash out on holiday but splurge regret can cast a shadow over the whole experience.

“Over a third of holidaymakers get caught out by unexpected fees making a holiday splurge that little bit more costly. With no HSBC fees on card spend or ATM withdrawals abroad, Global Money helps customers avoid unexpected costs and makes it easy to plan and stick to a holiday budget.

“Customers can manage their spending easily through the app so they can forget about fees and focus on fun with their families or friends.”