Foreign Perspectives

Archive for the ‘Travel’ Category

In common with all Spanish holidays, we’re completely full with Spanish guests this evening thanks to the Spanish holidays on December 6th (Constitution Day) and December 8th (Immaculate Conception).

Or, rather, we’re full of people from Spain but going by those that arrived last night not all of them will be Spanish. Thanks to the rising nationalism in Catalonia, the Spanish language isn’t actually taught in the schools just south of the border and it’s becoming increasingly common to have “Spanish” guests arrive who can’t speak Spanish. Unfortunately, the emphasis on Catalan means that it’s the only language that they can speak truly fluently and we’ve been reduced to hand signals on a couple of occasions in the recent past.

In fact, the introduction of Catalan only schools from around 1983 looks like it will have the effect of cutting off Catalona not only from Spain but from the rest of the world too. That date of introduction means that the first generation of workers who only speak Catalan have been coming into the workforce over the last couple of years and with that it’s becoming more and more difficult to deal with shop assistants who are, of course, at the younger end of the workforce.

Although, it’s nice to see that a local language is on the rise, the concentration on Catalán to the exclusion of other languages seems likely merely to alienate all the non-Catalans. Whereas elsewhere in Spain it’s expected that the locals will speak English, in fact most of the younger guests that we’ve had over recent months couldn’t speak English well and for that matter couldn’t speak French well and Spanish not at all.

With the Winter upon us people divide into the cold and the warm holiday camps whenever ideas for Winter holidays come up.

Although the Summer is obviously the peak time for warm holidays, there are loads of warm holiday destinations available all year. For one thing, when it’s Winter in the northern hemisphere, its Summer in the southern hemisphere so you can always go to the Summer no matter what month it is.

But, of course, changing hemispheres is pretty expensive in terms of flights and whatnot which takes that out as a viable option for most people, or at least as a regular holiday option. Still, that leaves you with lots of choice of warm, albeit not hot, holiday destinations that are fairly cheap to get to.

For example, southern Spain is still in Summer temperatures even in December. In fact, it’s a much better time to visit southern Spain than in the peak of Summer as the majority of the tourists have gone home so you’re not fighting to get accommodation and the traffic on the roads is considerably less hectic than it is during July and August. Right now Stansted to Valencia can be done for under £30 return, including taxes.

Further south brings in more exotic options for your such as Morocco or Tunisia which combine Winter warmth with a more exotic culture and they’re both fairly cheap places in which to stay.

For all of these, I find that one of the best ways to skim through the options is via SkyScanner which can pull up all kinds of interesting locations that you wouldn’t normally think of.

I was leafing through the categories and funnily enough though I write a fair bit about both holidays and finance I don’t think I’ve ever written something that covers both!

So, with the Christmas holiday season coming up, how were you planning on financing the holiday? Christmas is perhaps the worst holiday to finance as you can have a “worst-case” scenario in terms of finance with the potential for both Christmas presents and a foreign holiday which makes for quite a big bill for some people.

In an ideal world, you’d have saved up for it all months in advance, but then this isn’t an ideal world, is it? Therefore many people are looking to borrow money to finance it all.

Fortunately, many people are in the same boat and therefore there are lots of offers of credit around at this time of year. As a rule, avoid store credit for the presents as this is often the most expensive form of credit and instead look towards the banks. If you’ve not used up all the 0% card offers, this is the time to get filling in the appropriate application forms which can get you up to 9 months interest free credit on purchases and, if you’re lucky enough, you might be able to finance both the Christmas presents and the holiday with one of these cards.

One thing to avoid though is the head in the sand approach that many people take. That attitude will almost certainly cost you dear and you’ll end up paying way over the odds for your borrowing. Even if you can’t get 0%, at least check what interest you’re paying on your credit cards and use the one with the lowest rate to buy whatever needs bought.

Not so long ago there were all kinds of restrictions on transferring money abroad due to currency controls that lots of countries had in place. They’re almost all gone now and it has become more of a natural thing for “ordinary people” to need to transfer money abroad.

Most of the time it’s due to holidays, of course, but an increasing number of us are becoming small scale international jet setters with homes in more than one country and with both of those come a need to transfer money abroad.

Holidays usually involve a different category of currency conversion in that you are on the spot when you need the money, the amounts involved are smaller and you probably don’t have a local bank account. However, whilst the amounts may be smaller individually, added up over the years they will come to quite a hefty sum. Also, many of those who holiday in the same country each year may be considering the purchase of a property there and so have that local account too.

Most people ignore the costs of all those international transactions to their detriment. One friend of mine found that almost 10% of his entire salary was going in such bank charges simply because he was living abroad and using his “home” account in exactly the same way that he always had ie lifting small amounts frequently.

Saving money on those transactions is usually fairly easy. If you don’t want to change your bank, check out exactly how they charge for use of credit, debit and cash cards abroad. You will usually find that debit and cash cards are more economic ways of getting cash than credit cards are in that you won’t be paying interest on the money. However, that’s not to say that they are cheap. Typically a withdrawal of £100 in the local currency will cost you £4 to £5 but note that this includes a fixed transaction charge so withdrawing £20 will cost you around £2 ie 10% whereas £200 would be about £7 ie 3.5%. You can eliminate these charges altogether if you use the UKs Nationwide Flexaccount as it has neither transaction fees nor foreign exchange charges.

It’s slightly better if you buy things, usually. Using a typical Mastercard or Visa card will only incur the foreign exchange charge ie buying £100 of goods will cost you £2.75 and that £20 item would be 70p. Therefore you should buy things with the card directly rather than lifting the cash to pay for them.

What about larger amounts ie if you’re living abroad or have a holiday home abroad? Well, if you follow our advice and get the Nationwide Flexaccount you can lift £500 per day which means that it’s quite viable to use that card in conjunction with a local bank account to transfer amounts equivalent to several thousand pounds. You certainly couldn’t buy a house in that way but it’s enough to fund the payments for electicity bills and the like.

If you are talking thousands, then the usual way is to ask your bank to do a SWIFT transfer. This will cost around £25 plus there’s a currency exchange charge (which isn’t widely available). However, that too can be eliminated in some circumstances. For example, if you bank with HSBC then you can do free transfers to an HSBC account elsewhere in the world but the HSBC Premier account that you need to avail of this costs £20/month (unless you have £50,000 or more on deposit with them) so it’s not as useful as it first appears. However, if you are buying in Spain, the Halifax run to a free account which offers free transfers from Halifax UK accounts to Halifax Spain ones. What’s less obvious is that this route gives you a pretty much free way from pounds sterling to euros anywhere in Europe as banks are required to transfer euros at the same level of charges in other European countries as they do domestically ie to get euros in an account in France, you could transfer from the Halifax UK to Halifax Spain and from there to a French bank.

Other options include the use of the specialised money transfer services such as HiFX (there are lots of similar services around.

We didn’t manage to get out to see the rally on Saturday so we’d quite a trek to get to Ansignan to see it on Sunday morning.

As usual in France, all the promotion of the event is in French so there are relatively few foreigners attending what is quite a good rally. The most complete information on the rally is on the French site here which will have the information on the winners etc. in the not too distant future. One interesting consequence of this limitation in the promotion is that Foreign Perspectives achieves top ranking for searches about the rally.

The area over which the rally takes place comprises quite an intricate set of roads so you need to know the area fairly well or have a very good map to work out how to get to the various vantage points. For example, a journey which normally takes about 30 minutes from here ended up taking nearly 90 minutes due to the various diversions for the rally.

Whilst it’s mainly French teams taking part there’s quite a sizeable representation from Spain too.

Quite an interesting event if you’ve over here at the appropriate time next year (probably November 23rd & 24th 2008). Although it’s usually pretty good weather here, the route goes through several rather windy mountain passes so it can be pretty cold if you’re out of the sun.