With recent government figures showing a rise in unemployment and public spending cuts planned for next year, it seems that economic recovery is still some way off. If you fancy an overseas break but are concerned about the impact that a holiday could have on your wallet then here’s how to plan a great trip on a shoestring.

1. Pick your destination: You might dream about visiting Venice or Rome; but if you’re travelling on a budget then the high cost of living in these cities could be an insurmountable barrier. Instead, look at destinations such as Mallorca which are served by budget airlines and have a wealth of low-cost accommodation on offer.

2. Be flexible: If you’re keen to take advantage of the best prices then it’s important to remain as flexible as possible. Avoid flying at the weekend, instead aiming to start your trip on a Tuesday, Wednesday or Thursday. It’s also a good idea to check out the flights from different airports for a wider range of offers. For travellers prepared to be flexible on areas such as location, accommodation and tour type, there are even more price options available

3. Book in advance: Last minute holidays have received plenty of publicity as low cost options; but in fact it’s almost always cheaper to book in advance. Look to plan your break six to nine months in advance in order to benefit from the best deals, particularly if travelling independently.

4. Start saving early: There’s nothing worse than setting out on a pre-booked trip, only to discover that you don’t have enough in your bank account to cover living expenses. To avoid this scenario, make a budget in advance and put a small amount away each month to ensure that you meet your spending target.

5. Get a loan: If you feel that you deserve a real treat then you could always consider funding your holiday through a personal loan. Most banks will offer small personal loans to customers with good credit ratings. Santander, for example, offer loans with a rate of just 8.9% typical APR on balances of £7,500 – £14,950 on their website