YOUR MONEY: by Naomi Caine

Summer holidays are the latest casualty of the credit crunch. A recent report by Mintel found that one in five people is delaying an annual break because of financial worries.

But many of us don't want to - or can't - postpone our holiday. So the Sunday Herald asked various experts for their tops tips to help cash-strapped Scottish households cut the cost of their summer getaway.

1. Location, location, location The exchange rate can make a big difference to your holiday budget - and sterling has fallen against the euro in recent months. But travel beyond Europe in 2008 and your pound will stretch further. Helen Warburton, head of travel at the Post Office, says: "Holidaymakers face a steep rise in the cost of trips to the eurozone this year because of the plummeting pound, but summer breaks elsewhere in Europe and in the USA should offer better value."

The pound remains close to $2, making a trip to America an attractive option. Or you could consider countries whose currencies are linked to the dollar, such as Latin America and the Caribbean.

Other cheap destinations include Thailand, South Africa and Egypt.Or if you don't fancy long haul, Bulgaria is the cheapest European destination, followed closely by Turkey.

2. Time it right If you can travel off-peak, or even during the shoulder season, just before the masses arrive, you can cut the cost of your holiday. If, for example, you travelled to the Club Letoonia hotel in Turkey with Thomson it would cost £691 per person in August, but only £471 per person in June. Families with schoolchildren can still save money if they can enlist the support of a sympathetic head teacher. If the kids can take even a couple of days out of school, you could save money. At the very least, you should try to fly midweek when prices are often lower than at the weekend.

3. Book early - or late If you want to get a good deal on a budget airline, you have to get in quick. The prices reflect demand for the seats, so the emptier the aircraft, the lower the cost. But when it comes to package holidays, Dan Linstead, editor of Wanderlust magazine, recommends you wait until the last minute to snap up a bargain, when tour operators will be keen to offload their remaining stock.

4. Compare prices The internet is a great way to shop around for the best holiday deal. Try aggregator websites such as kayak.co.uk, skyscanner.net, travelsupermarket.com and opodo.co.uk.

And don't be afraid to haggle. Ask for a discount on a holiday - or if you can't get any money off, try and negotiate some extras, such as a free airport pick-up or a complimentary room upgrade.

5. Watch out for added extras A cheap flight might not look so cheap when you have totted up all the extra costs. Some no-frills airlines, for example, charge for baggage, fast boarding, and payment by credit card.

Take Ryanair. The airline allows you to check in up to three bags weighing a total of 15kg. If you make the booking online, it charges £8 for the first bag and £16 for each additional bag - one way. Passengers who pay the checked baggage fee at the airport have to pay the full price of £16 for each bag. There is also an airport check-in fee of £4 per person, per flight.

6. Take cover It's usually best to buy your travel insurance from an independent insurer, rather than the airline or tour operator. You can search for quotes on the internet, but make sure you know what you are buying. Check any exclusions and the excess - the amount you would have to pay towards each claim. If you are buying a family policy, it's worth noting that some insurers apply the excess to each person. So, if you have an excess of £50 for a family of four, you could end up paying £200 towards the cost of any claim.

7. Don't buy your currency at the airport Travellers can pay as much as 11% more for foreign currency if they wait until they get to the airport, according to recent research by FairFX.com. It discovered that the typical euro exchange rate at the airport was 1.16, compared with 1.22 on a debit card.

8. Play your cards right Many of us use our credit and debit cards abroad because they are so convenient. But most cards charge a foreign exchange loading fee of 2.75% on overseas transactions. You will also typically have to pay a fee of 2% to 3% if you withdraw cash on your card. Some banks even slap on another fee every time you use your debit card abroad. Halifax, for example, charges £1.50 for each transaction. Other offenders include Royal Bank of Scotland and Lloyds TSB.

Nationwide offers a good deal for holidaymakers. The debit card linked to the FlexAccount does not charge a loading fee, ATM fee or transaction fee. If you prefer a credit card, the new Abbey Zero is one of the be st deals if you are travelling abroad because there are no extra fees for foreign transactions.

An alternative is to use a pre-paid card. The cards can be loaded with dollars, sterling or euros and are used like any bank card with a Pin when you are abroad. You shouldn't have to pay to use the card for purchases, but you could incur a fee for cash withdrawals from an ATM. Steve Willey of Moneysupermarket recommends pre-paid cards from FairFX or CaxtonFX. He says: "These cards will credit back the initial purchase fee once you have spent over a certain amount, and offer the best exchange rate on the market."

9. Beware the excess Many people hire a car when they travel abroad, but they don't always fully understand the true cost of car rental. Insurance is one potentially costly trap. Car firms have to provide basic insurance, but it is rarely comprehensive. You will also usually have to pay a large excess. The amount varies according to the company, but could be as high as £600.

You can buy a so-called "damage excess waiver" to reduce the excess, possibly to zero, but you will pay a high price. Some firms charge as much as £15 a day - even then you could still be liable for any damage to the windscreen, tyres or undercarriage of the vehicle.

Holidaymakers can save money if they buy insurance to cover the excess before they travel from firms such as Insurance4carhire (020 7012 6300, insurance4carhire.com) and Car Hire Excess (0871 231 3141, www.carhireexcess.com). Insurance4carhire offers annual excess cover for car rental from £49 in Europe and £59 worldwide.

10. Ring the changes It used to be costly to make mobile phone calls from the Continent, but there is now a cap on charges in the EU of 38p a minute. Most phone firms charge up to the cap, but the 3 network has bucked the trend and its standard EU roaming charge is 25p a minute.

If you don't want to change networks, find out about any special deals for travellers. Vodafone Passport or 02's International Traveller Service, for example, can save you money if you are calling from overseas.

Don't assume it's cheaper to send a text. The EU cap means it is often less expensive to make a call.

People who travel frequently abroad or who venture beyond the EU should look into global Sim cards. Rob Barnes of Moneysupermarket says: "The cards cost up to £30 but can work out cheaper in the long run."