Norway consumer group warns against credit cards, 'buy now, pay later' for summer holidays

Norway's consumer watchdog, Forbrukerrådet, is urging people to avoid credit cards and "buy now, pay later" services this summer to prevent financial difficulties in the fall. A recent survey by Norstat for Forbrukerrådet revealed that 11% of respondents admitted to struggling financially in the autumn after overspending during the previous summer vacation.

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Try to avoid credit cards or 'pay later' solutions, unless you know you can pay it back after the holiday is over.

"Try to avoid credit cards or 'pay later' solutions, unless you know you can pay it back after the holiday is over," advised Guro Sollien Eriksrud, head of consumer economics at Forbrukerrådet. She noted that it's easy to lose track of spending, and credit interest rates often exceed 20%. "If you don't pay the full amount by the due date, the summer holiday can cost much more than it tastes," Eriksrud warned.

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If you don't pay the full amount by the due date, the summer holiday can cost much more than it tastes.

Eriksrud also recommended better planning of holiday finances and prioritizing family needs. "Remember that the experience rarely increases in step with consumption. Try to consider how you will feel when the holiday is over and autumn arrives," she said. The consumer advocate pointed out that increased costs, rather than just overspending, could be a factor for many. "Many planned this year's summer holiday expecting interest rate cuts. That didn't happen. On the contrary, the interest rate hike hits most people in July. And it will likely go even higher," Eriksrud stated, advising extra caution with spending this year if finances are tight.

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Remember that the experience rarely increases in step with consumption. Try to consider how you will feel when the holiday is over and autumn arrives.