Best ways to save money this Christmas
Christmas is a time for giving, but if you’re on a tight budget, buying gifts and organising parties can play havoc with your finances.
Whatever stage of life you’re at, the tendency is to stick to routine traditions at Christmas, from what time you eat Christmas dinner through to how you do your shopping. Whilst routines can take some of the stress out of planning Christmas, it’s worth considering some new approaches to reduce your expenditure this festive season.
By taking advantage of the following tips, from shopping online to using an interest free credit card, you can spread the cost, manage your finances and ensure your family enjoys a happy Christmas.
Shopping online can be a great way to save money, as there are now many deals for products & experiences on discounting sites, such as LivingSocial or Groupon. You can also earn cash back on your online shopping through sites, such as Quidco,or Topcashback, which pays a percentage of cashback depending on which retailer you buy from.
When shopping online, it’s important to consider how to keep your payment details safe. By using a credit card, rather than debit, you’re protected on all items over £100, as your credit card provider is liable through legislation called Section 75 of the Consumer Credit Act, to cover losses as a result of fraud, or if a company goes bust etc.
TotallyMoney.com advises you to use a credit card rather than a debit card when shopping online this Christmas and here are a few reasons why it makes sense:
No Interest – Credit card providers offering 0% interest making it easy to spread payments out without paying any interest. You could pay for your Christmas shopping using an interest free credit card and set up payments to ensure you have it paid off by Easter. Just be careful not to spend more than you are able to pay back.
Free Points to Spend –It’s not only supermarkets and shops that offer points when you spend money, as credit card companies also have points systems. You can use your points to pay for anything from your Christmas tree to your holiday petrol.
Secure your Spending – Under Section 75, if you spend more than £100 on a gift at Christmas and the company goes bust before you have time to hand over your gift, you can claim the money back on your credit card.
Planning & Payments – Look through last year’s credit card statements to see how you can save money this year and manage your repayments better by paying for everything on one card to avoid confusion.
Chairman of TotallyMoney.com, Will Becker suggests: “Panic happens when we leave the planning and purchasing of Christmas presents until the last minute. Buying under pressure can lead to bad and sometimes costly decisions. You can also end up overspending when you buy presents bit by bit without thinking. You may not think a little bit here and a little there matters but it all adds up.”
So to ensure you stick to a budget this Christmas, follow these tips:
- Look carefully at what budget you have for Christmas
- Use the internet to find a great deal
- Compare prices before you buy
- Use points and vouchers where you can
- Consider an interest free credit card and aim to pay it off within a few months Try not to overspend on your card, as it can lead to debt
