We all need money when we go on holiday, and the easy option is to just use your usual bank debit card when abroad.But that may not be the most financially savvy choice.Many standard debit and credit cards come with foreign transaction fees that can add as much as 5% to any purchase or withdrawal abroad, as well as poor exchange rates, warns Travel SuperMarket content editor Olly Green.Instead, it might be worth getting a travel credit card – a specialist credit card designed for overseas spending which avoids the additional foreign transaction charges that can be racked up on a normal debit/credit card.“They also give you a near-perfect exchange rate,” says Green, “so when you spend on holiday and you’re given the option to pay in pounds or the local currency, you can pick the latter with peace of mind.”And Helen Saxon, deputy editor at MoneySavingExpert, adds: “That’s the big advantage to them – you just end up paying for what you bought, rather than paying for the privilege of paying in a foreign currency.”Purchase protectionGreen says probably the biggest difference between a travel credit card and a travel debit card is that you get financial protection for purchases over £100 and up to £30,000 with the credit card.“So if you make a bigger purchase abroad and there’s an issue, you may be able to get your money back with a claim,” he points out.And Saxon adds: “You get this with every credit card, but it’s especially powerful overseas, as you may not be able to return a faulty item easily if you’ve already gone home with it.”Cashback and rewardsGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTSome travel credit cards offer airport lounge access and travel insurance, or cashback on purchases, and Green says: “You might even get cashback on your spending, which is another bonus.”Watch out for the interest payments(Alamy/PA)Just like standard credit cards, interest is charged on travel credit card balances, and Saxon warns: “They charge often hefty interest if you don’t, or can’t, clear them in full each month. Plus if you use them to withdraw cash, even overseas, you’ll usually pay a fee and interest to do so.”You need to be eligibleSaxon points out that you’ll need to pass a credit check to get a travel credit card, and suggests: “When looking for a travel credit card, it’s best to use an eligibility calculator to home in on the top card you’ve the best chance of getting first.”MoneySavingExpert offers an eligibility calculator through its Credit Club. What about a travel debit card?Saxon says some debit cards no longer charge fees when used abroad, but advises: “Don’t just assume your debit card is one of them – do check with your bank as you could be hit with a 2.5-3% exchange fee.“Fortunately, there are also specialist debit cards that don’t charge fees overseas – look for cards from banks like Chase, First Direct, Revolut, Starling, Monzo and more. You’ll need to open a current account to get the debit card, but you can just keep it as an overseas account that you transfer money to before you go away.”Prepaid travel cardsPrepaid travel cards are another alternative to travel credit cards for holiday spending. Saxon says these cards let you load money on to them before you go, either in pounds or foreign currency, so you can budget and avoid overspending.“Some also allow you to lock in an exchange rate in advance,” she says. “But they can come with their own fees, and in many cases they’re not quite as cheap as the very best specialist credit or debit cards.”Green says travel currency cards are widely accepted, and points out: “Because you can only spend what’s on the card, they’re great for sticking to a budget. Fees can vary though, so it’s best to double check the terms and conditions.”Is cash king?The experts say cash still has an important role on holiday, particularly for small purchases or in places where cards aren’t widely accepted.“But it’s usually not the cheapest main option, and carrying large amounts comes with obvious risks,” warns Saxon.Green says if you don’t want to take a card abroad and would prefer to use cash, pre-ordering foreign currency online tends to offer much better rates than buying at the airport.“The difference between the best and worst rates can be as much as £11 in every £100, so you could use an online comparison service to get the best deal,” he suggests.(Alamy/PA)Do you trust yourself with a credit card?Using any credit card is, essentially, spending money you haven’t necessarily got, and Saxon warns: “Of course, credit cards let you spend on them up to the credit limit – so if you don’t trust yourself to only spend what you can afford to pay off, it’s likely better to steer clear.”And she adds: “There are plenty of options, and you don’t need to only take one – many people have a travel credit card and a travel debit card, and also take small amounts of cash.“It’s a sensible strategy to have back-ups in case there are issues – you don’t want to be stranded abroad without being able to pay for things.”