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If like me, you're heading to the slopes over the next few months it pays to get your currency sorted before you go to avoid adding to the cost of your holiday.

Research from the AA Financial Services suggests travellers lose out by buying currency at poor rates at the last minute, or incurring charges for using credit or debit cards overseas. So what are the best currency options if you're heading on a winter sports holiday?

While most of us know we can save money by shopping around and preparing currency in advance, the survey shows that 18% incur bank charges by using their debit or credit card as their main means of spending on holiday while more than half (55%) take cash, often bought at unfavourable exchange and commission rates.

And perhaps because more us are booking trips abroad at the last minute, 15% didn't sort out their currency until they reached the airport, which usually offer pretty poor exchange rates and commission.

Mark Huggins, director of AA Financial Services, says that with 2011 shaping up to be a good year for winter sports in Europe, travellers could typically be losing up to £30 through charges and poor exchange rates. "The Sterling/Euro rate is poor enough without piling additional charges on top. Using overseas ATMs can be very expensive with between 2% and 3% typically being lost on bank charges."

Huggins adds that while good deals can be had in the UK to obtain Euros in cash, security is also a real issue, pointing out that up to a fifth of all travel insurance property claims are for lost or stolen money. "Not only do you risk losing your cash but there is no comeback in the event that you're short-changed or something goes wrong with your purchases."

Prepaid cards
If you're concerned about security, prepaid currency cards, such as the new AA Euro Travel Currency Mastercard, are a good option. There's a whole host of providers of prepaid cards and the best deal usually depends on what currency you are using so it's worth comparing deals on sites such as Moneysupermarket. Prepaid cards are more secure than cash and usually allow you to lock in an exchange rate, but look out for hidden extra costs such as an initial or monthly fee, as well as charges for purchases or withdrawals.

Shop around
The most sensible solution when traveling overseas is usually to take a range of options to cover all bases – including cash, a pre-paid currency card and your credit and/or credit card in case of emergencies. When it comes to cash, avoid airport bureau de change if possible, as we've blogged previously about how its pretty much a lottery when it comes to exchange rates at airports throughout the country.

As usual it's worth shopping around in advance to get the most currency for your pounds and you can check out our post on where to bag the best deals on travel money.

Remember to inform your bank or building society if you're planning to use your credit or debit card overseas to avoid it being blocked due to suspected fraud, and check how much you will be charged for withdrawals and purchases to avoid a nasty surprise when you return home.