10 simple ways to ease your holiday spending hangover

It’seasy to over-indulge over the holidays. Whether you’ve already overspent or are in danger of doing so, why not try to give your budget a summer workout? For many people, the summer can be just as expensive, if not more so, than Christmas. So if you have some spare time to sort your finances, it’s worth staying out of the sun to work out ways to fix your finances. Here are 10 tips from Brian Brown, head of insight at financial information business Defaqto:

Get a cashback credit card

Use it for major purchases and get money back off your shopping. Remember, you should always pay your card back on time.

Look for balance transfer credit cards with no fees

If you have credit card debt and can’t pay it off all at once, you might want to consider taking out a new card with 0% interest, which also lets you transfer the balance with no extra fee. Offers for introductory 0% balance transfer deals with no fees include Barclaycard, Sainsbury’s Bank and Lloyds Bank.

Borrow on a money transfer credit card

If you’re making a big purchase such as a car, or new kitchen and need to take out a loan to pay for it, consider instead using a money transfer credit card. You transfer the money you need into your current account and pay a fee, but pay no interest for periods as long as 32 months. This can often be cheaper than the cost of a personal loan.

Switch your current account provider

M&S Bank has been offering a £125 M&S gift card for switching and up to an additional £60 when you stay for 12 months, while Halifax has been offering £75 cash for people to make the move.

Larger loans could be cheaper

If you need a personal loan and are getting a quote from your lender, check if you can get a lower interest rate by taking a larger loan. Some lenders charge less interest if you borrow more.

Don’t bank on good exchange rates

Watch out for the exchange rate if you are considering buying foreign currency at your bank. Banks’ exchange rates can be less generous than high street shops.

Be wary of using contactless abroad

Many people are used to using debit cards for small contactless payments. Do that abroad and it could be costly. Many accounts charge a flat fee – typically £1.25 to £1.50.

Avoid paying for ATM transactions

Similarly, taking out small sums from ATMs while abroad in Europe can be very expensive. Some banks charge a currency fee for the cash – and in some cases there can also be an additional fee of as much as £1.50 per withdrawal.

Check for your best mortgage rate

Many home owners with a mortgage are sitting on their lender’s standard variable rate (SVR) because they have come to the end of a fixed deal. Often, these are much higher than the best fixed rate. Customers on SVR mortgages should consider moving to a decent deal when their deal ends.

Join a cashback website

Websites like TopCashback and Quidco have links with many retailers. Before buying, check if these websites have a link to your retailer. If you follow the links and make a purchase, you may get a sizeable amount of cash back.