Coins on scalesQ: How does the downgrading of the UK’s credit rating affect me?

A: Last Friday, the UK’s AAA credit rating was downgraded by one of the world’s major credit reference agencies. While this sounds dreadful, really the only impact it will have on the average person is when they are going abroad.

The effect of the downgrading has meant the worth of the pound has fallen quite a lot – which basically means you won’t get as much for your money when you’re exchanging pounds for foreign currency.

To help reduce the amount this will cost you, make sure you always shop around for the best travel money exchange rates. Don’t, whatever you do, leave exchanging your currency until you get to the airport, because their rates are notoriously awful.

Pay for everything you can using the local currency when you’re on holiday, as you’ll always get a better exchange rate that way, or, if you’d prefer not to pay in cash, take out a credit card that doesn’t charge for overseas purchases, such as the one from the Post Office. Just make sure you pay the balance off in full every month.

Other than that, don’t worry too much about the downgrading – it has only come from one credit agency and we are still considered Triple A by all the other agencies.

 

Andrea Ventress, money expert

 

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