Parents risk sinking into debt as they spend over £5 billion pounds during the summer holidays.

Parents risk sinking into debt as they spend over £5 billion pounds entertaining their children during the summer holidays research has found.

According to estimates by Sainsbury’s bank, parents will each spend £507.80 on average, a massive £5.29 billion in total.

With many households already feeling the effects of the recent interest rate rises, this could encourage families to put the costs on expensive loans, credit cards and overdrafts if they haven’t fully prepared for the added expense.

Chiltern’s Joanne Gill says: “School holidays are generally an expensive time for parents, as not only do they have to entertain their children when they would other wise be schooling for free, they also have to buy new uniform for the next school year.

“These additional expenses are often not fully accounted for from the family budget and credit facilities are regularly used to cover the cost in the short term.

“The trouble starts when these aren’t paid in full at the end of the month and interest starts to build. Where possible we would encourage parents to plan ahead for the holiday period and if necessary check interest rates to find the lowest possible credit facility.

“Credit cards and overdrafts generally carry higher interest rates than other means, plus there are always 0 per cent offers available on some credit cards to keep additional interest payments to a minimum.

“If parents are finding that they are going struggling to maintain their payments on their credit cards, loans and overdrafts, it’s best to seek advice before finances reach breaking point.”