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Don't Waste Cash When Christmas Shopping |
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Written by Webmaster
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Thursday, 08 January 2009 |
By Alisdair Cosgrove
 Money has been very tight for many of us this year, with the global credit crunch, tight lending conditions, and rising bills all impacting upon our finances. For many people this time of year is set to be stressful, with Christmas on its way and expensive gifts to purchase for loved ones, which many people simply cannot afford.
It is not all bad news, however, as many retailers have really cut the prices on many of their items, making it a far more affordable Christmas for those struggling to raise the cash to buy Christmas gifts whilst increasing spending levels at the same time.VAT has also gone down by a further 2.5 percent as announced in the recent pre-budget report, and this could help to reduce costs even further.
In order to make the most of these bargains and to ensure that you do not spend over the odds this Christmas you should avoid wasting your cash on additional extras, many of which are designed to make additional revenue for the retailers but offer little to consumers.
If you buy certain expensive
products in your shopping such as electrical items or jewellery the retailer will most likely try to sell you insurance cover for the item. However, bear in mind that this could cost you unnecessary money, as you will find that these products are already covered under your home insurance, so you do not need any additional cover.Extended warranties are also often sold alongside many items, and again you should consider carefully whether you need this or not. In some cases, depending on the value of the item, you may be better off taking your chances and replacing it if something does go wrong, and dont forget that it is guaranteed by the manufacturer for at least one year in most cases.
Many people may have heard of PPI, which is payment protection insurance, and this is something else that many retailers will try to sell to consumers. If you do decide to buy this insurance shop around for it, as prices can vary widely, and also bear in mind that you may not even be eligible to claim, so check out the terms and conditions before you commit.Most retailers will offer store cards to customers when they reach the till but be very careful. The interest rates charged on these cards is extremely high, so you could be left in a lot of debt if you spread your repayments on the balance. Also, after a fairly lengthy application process at the tills you may be turned down anyway, and this can damage your credit rating.
In many cases the consumer gets little or no benefit from these various extras that retailers sell, and the only benefit goes to the retailer, which makes a lot of commission from the sale of these various extras. Dont be fooled by the sales patter from the staff.
Alisdair Cosgrove has been writing personal finance articles for many years and can find more of his work at the UK site TheMoneyStop.co.uk, offering best balance transfers along with great compare travel insurance and also unsecured personal loans. Visit today to find a great deal or read one more of Alsidair's great articles.
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Last Updated ( Thursday, 08 January 2009 )
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