Easy access to cash is a vital ingredient of any successful holiday abroad. So don't leave it to the last minute to think about what to take get organised in advance to give yourself a hassle free break.

what are my holiday money options?

Cash, Credit cards and Travelers Cheque's are the main ones. Taking a combination of all three is the most sensible approach, but the mix will depend to some extent on where you are going. Each has its pro's and con's.

travellers cheque's! are you sure?

You can probably manage without them quite easily if you are going to a major resort. But dollar cheque's are still useful in the US, where they are widely accepted as payment for goods and services without having to be exchanged for dollar notes. Travelers cheque's are also worth taking if you are going off the beaten track, for their security features as much as anything else.

are they safer than credit cards?

The issuers say they can usually be stopped or replaced within 24 hours if they are lost or stolen, whereas credit cards can take much longer. But you do need to keep a separate note of serial numbers to take advantage of this service.

which is cheapest?

Credit and debit cards generally work out cheaper to use than either foreign currency or Travelers cheque's, where commission charges can amount to as much as 6% in total. You typically pay 2.75% extra when you use your credit card to buy anything abroad or withdraw cash. With debit cards it is usually around 2%. These costs are offset to some extent by the exchange rate you get, which is usually better than tourist rates.

what about cash withdrawals?

Stick to debit cards if your bank account can stand it. You usually pay 1.5% to use either type of plastic in cash machines. But with credit cards you often pay interest as well from the date you take the cash, even if you pay off your account on time. Debit card holders should look for the Cirrus or Maestro sign in the case of Switch, or the Visa sign for Delta.

does it matter what card i take?

Not really. Visa and MasterCard have a similar number of outlets worldwide. But taking one of each avoids any problem, and is a precaution against one card being damaged.

lost or stolen credit cards?

All credit card banks have emergency 24 hour numbers you can ring. Also depending on the type of card you have, emergency money can sometimes be given to you through a local bank.

what about hard cash?

A wallet full of Euros is still a popular way to carry holiday money, despite the obvious security risk. Most travel insurance policies will cover you for a limited amount, and even then, you will probably have to wait until you return home to get it back. However, you need some local currency to tide you over until you can get to a bank or cash machine. Most bank branches and bureau de change routinely stock common currencies, but it is wise to order even these a few days in advance, to be on the safe side.

where can i purchase holiday cash?

Your local bank or post office is probably as good a place as any. Expect to pay about 1 or 2% commission, with a minimum of £1.50 to £3. You may save on commission if you shop around, but don't be dazzled by commission free deals: check that you are still getting a decent exchange rate. If you can wait until you arrive at your holiday destination, you can often get a good deal from a local foreign bank.

what about euro cheque's?

These are expensive and no longer widely accepted.

what is visa money?

It is the electronic version of Travelers cheque's, a bit like a disposable cash card. You pay in between £100 to £5,000, which you can then draw down as you need it using a card and PIN number. Available from Alliance & Leicester, Thomas Cook, Royal Bank of Scotland, and Bank of Scotland.

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