Last year on holiday in Alaska I found myself penniless when Visa blocked my attempt to withdraw money from an ATM. To avoid financial embarrassment this year I took Euro Travellers Cheques on my tour of southern France, only to find that I was spending much of my tour in the banks and post offices of the region trying in vain to cash them. I tried three banks and a post office, all in vain.

This situation is surely unacceptable. Does it mean a return to the bad old days of truss-like money belts, and to stuffing Euros into socks? David Griffiths, by email

Times Online responds: The best thing to do when travelling abroad is to take a mix of different forms of currency away with you. This would include cash, Travellers Cheques, a travel money card, credit and debit cards.

Travellers Cheques have steadily declined in popularity over the past few years, although £10 billion worth are still bought annually. Travellers are increasingly choosing other forms of currency that don't require traipsing round town to get them cashed.

However, Travellers Cheques are still available in more than 200 countries worldwide and Travelex have vowed to continue to issue and redeem them in its shops worldwide for as long as there is sufficient consumer demand. They are most widely accepted in the USA, Canada and Germany, where they can be used as cash in shops, restaurants and hotels.

Helen Warburton, Head of Travel at the Post Office says: “An additional benefit is that use of Travellers Cheques carries with it a replacement assistance service for both passports and the cheques themselves. A good way to check where they are accepted is to visit www.americanexpress.com/useTC, which allows holidaymakers to enter their travel details and find a list of outlets that will cash Travellers Cheques before departure.”

Replacing the Travellers Cheques as an alternative to taking cash abraod are the Post Office Travel Money Card and the Travelex "Cash Passport", which are both now popular ways of taking foreign money abroad. They are plastic payment cards that can be loaded with cash before departure and reloaded during the trip by phone from anywhere in the world.

By loading a Cash Passport with money, holidaymakers can fix the exchange rate on the date of purchase so they are not vulnerable to unreliable exchange rates while abroad.

The money cards can be used at ATMs and in shops, restaurants and bars, making it a flexible means of carrying money - plus, there's no need to carry ID to cash funds. Best of all, it is secure because it is not linked to your back account and can be easily replaced if lost or stolen. Therefore, while they still have the same security features as Travellers Cheques, the Cash Passports and Post Office Money Cards are more convenient and easier to use.

As well as the card, savvy holidaymakers are increasingly taking advantage of online currency deals such as those at www.travelex.co.uk, which claims to offer the best-priced foreign currency or a refund the difference.

Travellers are also encouraged to carry with them their credit and debit cards in case of emergencies. However, you do have to be wary when taking money out of ATMs, because many cash machines charge commission for every withdrawal and also a percentage fee, which may not be apparent until your monthly statement arrives.

If you do decide to travel with your debit and credit cards to an area where chip and pin is not widely available, HSBC recommends notifying your bank so they can pick up any strange activity as quickly as possible.

So, there's no need for the truss-like money belt - instead carry a mix of currency when travelling. Make sure when ordering your foreign cash that you get a good exchange rate. Don’t leave it to the last minute, as it will inevitably be the most expensive option - i.e. airports and stations.

The Post Office bureau de change offers over 2,300 major currencies commission free while www.foreign-currency.com also gives good deals on exchange rates, but I'd also compare their rates with Marks and Spencer and Thomas Cook.

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