ARE you heading for sun, sand and seeee . . . rious COSTS?

Whether it's dollars or euros, spending abroad on your hols this summer is likely to cost you a THIRD more than last year.

So to avoid a fate worse than holiday drizzle ACT NOW to make sure you get the most bucks for your bang.

Because if you wait till its time to go-it'll be too late.

Holiday costs themselves haven't rocketed. The recession has meant more cheap flights and packages.

It's when your feet land on foreign soil that problems begin . . .

The pound's pitiful performance against euros and dollars means everything in those currency zones is pricier. But follow my guide to cut costs where you can.

FREE EUROPEAN MEDICAL COVER: You're entitled to this ANYWHERE in the EU or Switzerland, providing you carry a valid EHIC card.

Check

The European Health Insurance Card entitles you to free or discounted treatment in STATE-RUN hospitals. You generally get identical treatment to that country's citizens.

Don't look at it as a substitute for travel insurance, though. Things like baggage, holiday cancellation or delay aren't covered. And with the EHIC you may still need to pay or go private. Travel insurance covers that.

The EHIC replaced the E111 card in 2005. Nearly three million holders have cards that expired in 2008 and won't be valid abroad. So check yours. You can get one or renew at ehic.org.uk , 0845 606 2030. Forms are also at Post Offices.

SUMMER HOLIDAY CAR HIRE: In some areas, lack of summer bookings means dirt- cheap prices and high availability.

For example, June car hire from Spain's Malaga airport starts at £10 A DAY-so for those staying in nearby Marbella, a week's car hire is substantially cheaper than hailing taxis to and from the airport.

Yet as we approach the holiday season, prices typically balloon. The safe option is, if you need car hire and find a bargain, nab it now.

Use specialist comparison sites. My top picks are kayak.co.uk and carrentals.co.uk .

To further slash prices there are tricks like using Tesco vouchers, hidden cashback and specialist cheaper insurance, see moneysavingexpert.com/carhire .

CHEAP TRAVEL GUIDES: Don't wait until you get to the airport shop. Borrow guides from friends or the library.

If you must buy one, the web can be half the price of a bookstore. Use a shopping comparison site-I've a handy tool at megashopbot.com which compares their best results.

It's also worth going online or calling up local tourist offices for plans, timetables and maps.

SPECIALIST OVERSEAS SPENDING CARDS: Spending abroad on the RIGHT credit or debit card is the cheapest way to use your money, beating even the best bureau de change.

However, they can take weeks to get and set up. So apply now and it'll be in your purse or wallet in time.

Don't think all plastic's good though. Go overseas and MOST cards levy enough charges to power the National Grid. You face fees for cash withdrawals and penalties for spending-plus they load the exchange rate by around three per cent. So spend £100 worth of dollars and it'll cost you £103-plus the fee.

Specialist cards work differently. For years, Nationwide led the way with load-free cards, yet from May 6 (for its credit card) and June 1 (debit card) it will add a load for spending OUTSIDE Europe.

The new overall winner is the load-free Post Office credit card, though it's best to spend on it rather than withdraw cash, or else you pay a minimum £3 fee.

And always pay it off IN FULL each month to minimise the interest.

If you're in Europe, spending on Nationwide's debit card does beat it though, as it has no cash withdrawal fee.

AIRPORT PARKING: Public transport is cheap and accessible for most airports, yet many still drive. If so, the sooner you book parking spaces the cheaper. Comparison site holidayextras.co.uk will find them for you.

Gamble

To cut costs further, see if you can rent someone's drive near the airport. Use websites like parkatmyhouse.com and yourparkingspace.co.uk .

SHOULD I BUY CURRENCY NOW?: The big question. Exchange rates fluctuate as wildly and unpredictably as shares on stock-markets.

There's nothing wrong with trying to guess movements by buying early or holding off, but it's called currency speculation and is a gamble even highly-paid City traders can't always get right. The pound may be weak right now, but that doesn't mean it can't get weaker.

Whatever you do, DON'T leave it till you get to the airport. You're a captive customer, so rates are terrible.

Pre-ordering for airport pick-up is better: use comparisons at moneysavingexpert.com/travelmoney for each country's best rate.

Ahead of the curve

EVERY tax year each UK adult is allowed to save up to £3,600 in a cash ISA, which is simply a TAX-FREE savings account.

Yet the 2008-9 tax year ends at midnight, and most accounts close MUCH earlier. The ISA tax gain is big - boosting basic rate taxpayers' interest by a quarter. For higher rate earners it's two-thirds. Get money in today and it stays tax-free year after year; yet don't use it, and you lose it. From tomorrow, you'll be using your 2009-10 allocation.

Many top-paying accounts have already shut their doors, but some good 'uns are still open. The top instant-access payer Barclays Golden Cash ISA is still available. It needs just £1 to open and pays 3.61 per cent, though 1 percentage point of this is a 12-month bonus. Existing Barclays customers can open it online until 11pm; for everyone else via one of its specially open major branches.

M&S's 3.1 per cent cash ISA, again with a 1 per cent bonus, is available online until midday or by calling 0808 002 2222 before 4pm. Both are variable-rate deals, so banks can change what they pay willy-nilly. If they do, though, you can ALWAYS transfer provider. Alternatively, there are fixed-rate cash ISA options and some where you can merge current cash ISAs into one higher rate. See www.moneysavingexpert.com/cashISAs

TWICE the banks have been defeated in the bank charges reclaiming test case and the Court of Appeal even said NO to allowing them to appeal at the House of Lords. Yet the banks asked the Lords directly and, sadly, they said 'yes' on Wednesday. So they can now try their luck there too, annoyingly delaying possible payouts for 100,000s by many months more.

TV Money Guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.comwhich is packed with info on how to get more money in your pocket.

This article has 1 comment