Top Tips to a Thrifty Xmas

• Guides
• Published: 10 Nov 2009 in Money and Credit Cards

By Sharon Flaherty

Believe it or not, Xmas is fast approaching and is now less than six weeks away. With that in mind, you may be wondering how to manage the cost of splashing out on all those presents, well wonder no more, as there are plenty of ways to have a great Xmas without getting into financial difficulty.

Shop at cheaper retailers: Consider using cheaper retailers such as Aldi or Lidl as you may find they offer the same products as leading retailers but at a cheaper price. You may not be able to get all you dream of for a knock down price, but it’s worth finding out what they do best.  You can also save money on stocking fillers by visiting 99p shops and pound shops which have sprung up over the course of the recession, and stock an array of branded products. Try:  www.poundland.co.uk and www.99pstoresltd.com, to find your local store.

Pay for Xmas on a 0% interest credit card: If finding money to pay for Xmas food, presents and decorations is a problem and you are going to have to borrow to fund the cost of Xmas, then a credit card could be an option worth considering. If you apply now, it’s possible you could still get your hands on a credit card before Xmas offering 0 per cent interest for a set period. You just need to shop around to find the best deal that suits your needs. Remember though, anything you borrow needs to be paid back so make sure you do not overstretch yourself and end up giving yourself a financial headache in the New Year.

Recycle gifts and make your own: If you already know Xmas is going to be financially tough, why not think about making use of any talents you have, such as baking or making gifts. It may sound unfashionable but it could save you money in the long-run and also adds a personal touch to your present giving. Also, don’t rule out re-gifting, you may have been given a present in the past that you don’t like or haven’t used but that doesn’t mean someone else will feel the same about it. So pull out all those unwanted presents!

Use Vouchers and Discount Codes: Last year we were spoilt with high street sales as the credit crunch really began to take effect, but this year there is no guarantee of such a sell-off, so make sure you bag the best deals by taking advantage of voucher codes. Try: www.confused.com/voucher-codes, www.vouchercodes.co.uk, www.sendmediscounts.co.uk or www.myvouchercodes.co.uk . It is also a good idea to stock up on Xmas food and drink early and take advantage of any buy one get one free deals and promotions on sites such as www.fixtureferrets.co.uk and supermarket comparison site: www.mysupermarket.com.

Agree and stick to a spending limit: You’ve heard it before but setting a spending limit and sticking to it really is the best way of ensuring you don’t bog yourself down financially this Xmas. Work it out, write it down and be realistic, and don’t be afraid to agree limits with family members and friends, they may just be as glad of the boundaries as you are. And if you really can’t stick to a budget then consider taking out a pre-paid card which allows you to pre-load your own money onto a payment card such as MasterCard, Maestro, Visa Electron or Amex which you then use wherever it is accepted. The cards are essentially the same as credit cards without the credit, forcing you to stick to your budget as you can only spend what you have loaded onto the card.