Stick to a festive budget
CHRISTMAS is just five weeks away and while it may be a smaller affair this year due to Covid- 19, it still has to be paid for so you need to get your finances in shape.
Planning now could ease the stress and financial pressure of a last- minute splurge and avoid a debt hangover in the new year.
MoneySupermarket. com’s money expert Claudia Nicholls said if money is tight your first step is to set a budget and stick to it: “It is really easy to overspend so keep a running total to show how much you have left.”
Try to avoid putting Christmas on plastic but if you do, use a credit card charging zero per cent on purchases for an introductory period. “Clear the balance as soon as possible to make sure you are not paying for this year’s festivities next Christmas,” she added.
Nicholls said beware store cards, despite tempting discounts on your first purchase: “Interest rates are typically high and uncompetitive.”
Black Friday is looming on November 27 but research prices, beware impulse purchases and look to get money off bills as well as presents. “Lots of providers are offering deals on mobile phone contracts this year,” Nicholls said.
Justin Basini, co- founder of credit specialist ClearScore, said beware Buy Now Pay Later schemes: “They do not offer the same consumer protections as credit cards, so you could be left out of pocket if the product is faulty, does not arrive or the company goes bust.”
UK Finance is warning of a surge in Black Friday online purchase scams, where customers pay in advance for goods or services they never receive.
Managing director of economic crime Katy Worobec said: “Games consoles, bicycles and clothing are high risk, while criminals target home improvement and DIY purchases.”
Black Friday is not always the best time to buy cut- price items, with the January sales and Boxing Day sales offering more bargains, according to website OfferOfTheDay. co. uk, so if purchases can wait then make them after Christmas.
When buying gifts online look out for free standard delivery deals, as next day deliveries are almost always more expensive.
You can save money with hundreds of online vouchers, discount codes and limited time offers. Visit VoucherCodes. co. uk, GroupOn. co. uk, MoneySavingExpert. com and many other sites, or go direct to retailer websites.
Tommy McNally, founder of tax app TommysTax. com, said if you have been made redundant and are short of cash, check if you are eligible for a tax refund: “Your tax deductions may have been higher than necessary, and a refund could save Christmas.”
If struggling, be open and honest with children or grandchildren about the need for a less extravagant Christmas. He added: “They may understand today’s situation better than you think and lower expectations will take the pressure off.”
If dreaming of a festive staycation, it might be a lot cheaper to delay it until January as weekend breaks in the UK can cost four times as much in December, according to travel money experts FairFX.