Carrying cash in Europe

Q: My wife and I are doing a Trafalgar tour of most of Europe in September. We would like to know what is the most cost efficient way of taking foreign exchange and paying for things while in Europe. - Alf Casey.
A: The days of taking the bulk of your money in traveller's cheques are well and truly over. Credit cards are far more popular these days. However, drawing money from your credit card at an ATM overseas can be expensive. Now you can draw money directly from your current or savings account as long as your bank card is linked to one of the international banking networks (ie. look out for a Visa or Cirrus logo on the card). Overall, though, it is best to spread your travel allowance between cards, traveller's cheques and cash. You need to take some hard currency (in this case, Euros or British pounds) in low denominations to cover any expenses soon after your arrival. Funds to pay hotel bills and big expenses can be held in your credit card (it is best to have both a Master and a Visa card, in case one of them is out of order). Funds for everyday purchases can be drawn using your ATM card, while you should have a limited number of traveller's cheques tucked away somewhere to use in case of an emergency. Remember to record the numbers of all your credit cards and traveller's cheques, along with phone numbers, to make it easier in case of loss.