Pre-paid credit cards have been said to take a huge chunk of holidaymakers' annual spending on plastic, Virgin Money explains further.

Approximately 40 pre-pay cards are available on the market sector, and additional providers have been expected to bring out new deals.

Virgin Money indicates new facts and figures for one-off application fees, which start from £7.08. Customers need to be aware of monthly fees; nearly 40 per cent of providers charge a monthly fee to cardholders ranging from £1 to £5.95.

Debit and credit cards charge handling and commission fees for overseas usage, this adds up to as much as £5.96 for a £100 withdrawal.

Grant Bather, Virgin Money spokesman commented: "Pre-paid cards remove the temptation to run up debt while you're on holiday as you can only spend the amount that is loaded on your card.

"Plus if you really do lose control of your finances relatives or friends can load the card up with emergency cash."