With festive shoppers in a frenzy, Teresa Hunter has 10 tips to avoid post-Christmas catastrophe.
Seasonal spending in the Scottish capital is only topped by families in Newcastle and Cardiff, according to a survey by AOL Shopping.
By contrast, Londoners fork out only £120 per child. In all, Scots will spend £848 each over the Christmas perio
d, £136 more than the average Briton, Deloitte predicts.
The question is: can we afford to be so generous? Probably not is the view of Citizens Advice Bureau, which claims that while families are planning to hit their credit cards in a big way to buy presents this Christmas, they are also struggling to pay basic household bills such as gas and electricity.
And it will be no use relying on cheap credit to bail them out in the new year. Those days have gone. Zero-interest plastic offers are much thinner on the ground, rejection rates have increased by 17% and credit limits are being reduced.
Now is the time to plan your spending to avoid catastrophe when the bills land on the mat in the January.
Scotland on Sunday has devised 10 hot tips for saving money, staying out of debt, beating the credit crunch and enjoying a happy and solvent celebrations this Yuletide.
1. Price comparison websites
Before you go out shopping, check who has the best price on whatever it is you want to buy by logging onto sites such as Kelkoo.co.uk, Pricerunner.co.uk, or mySupermarket.co.uk. For the cheapest games, DVDs and CDs, check
www.find-dvd.co.uk,
www.find-games.co.uk, and
www.find-cd.co.uk.
Another site worth checking out is
www.hotukdeals.com, which is a chat forum where users post up any hot bargains they have spotted.
2. Money-off coupons
Look out for money-off vouchers in newspapers and magazines. Don’t forget in-house magazines at stores and supermarkets.
Cut out the vouchers and make sure you take them with you when you go shopping.
3. Loyalty points and cards
Tesco Clubcard loyalty points can be swapped for vouchers worth four times their value which can then be used to buy a range of presents, from magazine subscriptions to meals and theatre trips.
It even has a deal with the jeweller Goldsmiths, which effectively means you can buy your wife an item for £200 with £50 worth of loyalty points.
Nectar also has special deals with certain retailers.
If you have any loyalty points, check out what you can buy with them to save the most cash.
4. Cashback websites
Sites such as
Quidco.com and
Giveortake.co.uk refund a percentage of the purchase price to you, although this money may take some time to go through.
Although time is running out, many retailers are still happy to deliver goods to your local store for collection.
5. Cashback credit cards
If you have a cashback credit card, make sure you use it for all purchases. Capital One currently has a card offering 4% cashback for three months.
American Express betters this with a 5% cashback pledge for three months. However, Amex cards are not accepted everywhere.
6. Stay away from store cards
The easiest way to spend is using store cards, but it is also the fastest way to get trapped in debt. Avoid them like the plague.
The only time it makes sense to use one is if you are offered a significant discount off whatever it is you are buying. But once that purchase is complete, cut it up.
7. Beware credit card penalties
If you exceed your credit card limit or are late with the minimum payment you will be hit by penalties.
Keep a close eye on your balance and always pay at least the minimum required on time. But keep a close eye on your statements to make sure the bank isn’t hitting you with any excessive hidden fees. If it tries to, complain.
If you do need to borrow, use a zero-interest card whenever possible. These are becoming more difficult to get, and it is too late for Christmas. But there are still some around.
Apply now to be sure of having cheap credit in January when the bills start arriving.
8. Budget carefully
Draw up a shopping list, price it before you go out and stick to it. Do not get carried away or panic buy. Never shop on an empty stomach or after a row.
Do not let your current account drift into the red without consulting the bank manager. You’ll be flattened by charges.
If you can’t afford to buy something without going overdrawn, then don’t. If you are determined to proceed, arrange a bank overdraft.
9. Shop using cash
Although extra care is needed when carrying bags, purses and wallets, if you find keeping within your shopping limits difficult then make your purchase in hard cash.
Most people find it more difficult to part with readies than to hand over credit cards. It has the added advantage that once the cash has gone, it is gone.
10. Keep receipts
You are only entitled to swap goods which are faulty. However, at Christmas many leading stores will allow unwanted presents to be exchanged for something else or another size. But they are under no obligation to do so.
It is vital to keep receipts. Some shops, M&S for example, will only provide a cash refund with a receipt. Once the sales start, you’ll only get cash or exchange to the value of the sale price without a receipt.
Each time you buy, it pays to ask the assistant: “If it doesn’t fit or they don’t like it, can they exchange it or get their money back?” Then write down the reply on each receipt so you have a record of the arrangements at each different store.
