Holiday pitfalls you'll want to avoid when booking your 2018 break

But while you may be dreaming of an exciting escape, when making your plans, make sure you don't fall foul of a holiday pitfall that could leave a serious dent in your pocket.

Here are 6 holiday pitfalls to avoid, which could stop you spending more than you need to...

1. Don't rule out destinations where your money may go further

Travel money expert FairFX says currency shouldn't be an afterthought - choosing a destination with a better exchange rate could spell savings when it comes to forking out for accommodation, shopping and dining out.

FairFX suggests looking at where the pound has performed well over the long-run to find destinations where your travel budget could go further. It says sterling has fared particularly well against currencies in Argentina, Nicaragua and Costa Rica over the past year, for example. Destinations such as Sri Lanka, Laos, Indonesia and Hong Kong are also generally offering UK travellers better value compared with a year ago.

Ian Strafford-Taylor, chief executive of FairFX, says: "If the Brexit trade talks have some positive momentum in 2018, then we may see sterling improve against the euro. However, if Brexit negotiations impact on sterling creating another rocky year, travellers may have to look further afield at destinations where countries have performed better in the long run."

2. Don't forget to plan how you buy your currency

"Regardless of your holiday destination, there's plenty of steps to follow to make sure that when you want to buy currency, you get the very biggest bang for your buck," Ian adds. "This includes considering exchange rates before you book, tracking rates so you buy when they're at their strongest, as well as avoiding travel money traps, such as buying currency at the airports and being hit with credit and debit card fees."

3. Don't be rushed into booking a deal without checking out whether it really is a 'bargain'

Some holiday ads may boast special 'limited-time offers', which could encourage you to snap up what they are offering without checking whether you could be getting a better deal.

But consumer group Which? says that while tight deadlines, emotive language and countdowns may rush us into making a decision, it might not turn out to be the right one.

Rory Boland, Which? travel editor, says: "Compare prices with other holiday companies and travel agents to check savings are genuine."

4. Don't risk it by travelling without insurance

Travelling abroad uninsured can cost thousands if a trip goes wrong.

According to the Foreign and Commonwealth Office (FCO), nearly three-quarters (72%) of people aged over-55 plan to travel abroad in 2018 and half (50%) of these have a pre-existing medical condition.

A European Health Insurance Card (EHIC) provides access to state medical care in the European Economic Area - but does not cover other costs, such as bringing the patient back to the UK, or additional accommodation costs in-country.

The FCO says holidaymakers should research the appropriate travel insurance options and make sure they give a detailed and accurate medical history to insurers.

5. And don't just assume you're covered

Just because you have some form of insurance, don't just assume it will cover your particular trip without checking. Research from financial information business Defaqto shows that the level of protection for cruise holidays, for example, varies considerably. Only 58% out of single trip policies, and 61% of annual policies it researched cover cruise holidays as standard.

Brian Brown, head of insight at Defaqto, says: "Today's modern cruise ships cater for every taste with celebrity speakers, specialist classes such as gourmet cooking and wine tasting, as well as traditional sight-seeing. Yet a cruise holiday is very different to a holiday on the shore and has very different risks." Similar research from Defaqto previously found that only 12% of single trip travel insurance policies it looked at cover winter sports as standard, while less than one in five (18%) annual policies include winter sports cover as standard.

6. Finally, don't forget to pack your insurer's contact details

When you go away, make sure you take note of your insurer's emergency phone number. That way, if something happens, you can call your insurer first for help.

HOW... TO EASE THE FINANCIAL PAIN A OF DIVORCE

January is often a time when divorce lawyers see a jump in enquiries, perhaps due to tensions brewing over Christmas, or people seeing the new year as a fresh start. And according to research from Aviva, couples typically spend £14,561 on legal and lifestyle costs when they divorce or separate, with nearly one in three (31%) dipping into their savings to supplement their income, while over a quarter (26%) turn to credit cards. Close to a quarter (23%) have also borrowed from friends and family to tide themselves over.

But there may be ways to take some of the financial pain out of the process. Here are some tips from Sarah Coles, a personal finance analyst at Hargreaves Lansdown...

1. Have an emergency budget. This will help with damage limitation to your finances. It's incredibly common to start running up debts after a split, because you are dividing the same income between two households - while at the same time paying for what can be an expensive process. It makes sense to draw up an emergency budget to cut your expenses as much as possible during these first difficult months.

2. Consider freezing accounts. You'll need to make decisions on joint financial arrangements for the short-term. Banks can freeze the assets in joint accounts, or make arrangements so that you both have to agree to any money being withdrawn. Similarly, they can place controls on debts to prevent either of you from abusing joint arrangements. If you are being paid directly into a joint account, arrange for the money to be paid elsewhere, and if there are bills, rent or the mortgage coming out of it, you'll need to consider arranging an alternative way of paying these.

3. Understand the value of what you have. Couples often offset assets, but it's important to appreciate the value of what you are giving up and what it will cost to replace it. Someone forgoing a pension for the lion's share of the property, for example, needs to understand what they are trading. It may be worth speaking to a financial adviser as well as a lawyer.

4. Don't forget pensions. In many cases, it's one of the largest assets built up during the marriage - often largely in the name of one person. You may have a few options as to how to split it.

5. Review your protection. You may need to change your nomination of beneficiaries for your pensions and work-based death in service benefits.

Revisit your overall position. After a divorce you may need to revisit your longer term savings and investments too. You may need to rebuild your portfolio or your pension, and re-think your plans for retirement.

POUNDNOTES

Financial fact: UK households' median average disposable income was £27,300 in the financial year 2016/17, up £600 on the previous year, according to Office for National Statistics (ONS) figures.

CHARITY'S ONLINE SHOP SAW SALES SURGE OVER CHRISTMAS

Online shoppers rushed to seek out designer clothing at Oxfam over the Christmas period, the charity has said, with sales soaring by 33%. Vintage and designer clothes were the online shop's top search terms, with brands such as Burberry, Barbour, Gucci, Whistles and Boden being particularly popular. First edition books, as well as cameras, blankets and throws, were also highly sought after.

OVER HALF OF PEOPLE SAY 'RISING LIVING COSTS ARE BIGGEST MONEY WORRY'

Two-fifths (40%) of people think 2018 will be a financially challenging year, with 12% admitting to being 'seriously worried about their finances' in the year ahead, a survey has found. Just under half (49%) of people said they need to try and reduce their outgoings in 2018, GoCompare found. More than half (58%) of those surveyed from across the UK said rising living costs are their biggest financial worry of 2018.

MORTGAGE LENDER ANNOUNCES CASHBACK OFFER

Competition in the mortgage market has been ramped up as a lender has unveiled a new cashback offer. Halifax has announced it is offering first-time buyers, home movers and those who re-mortgage from another lender £500 cashback on qualifying mortgages until March 18, 2018. The cashback will be paid automatically on completion and sent to the conveyancer with the completion funds.