Avoid festive finance money meltdown

festive money meltdown

Pre-planning for the festive period is becoming increasingly more popular, with many people finishing their Christmas shopping sprees as early as possible to avoid the last-minute dash around the crowded shops. Planning well in advance is a great way to save time and stress as Christmas nears, and it can also be a good way to save money.

The money experts at TotallyMoney.com have looked into some of the reasons why it’s a good idea to do your Christmas shopping with a credit card.

1. They offer free points & prizes

Credit card companies are always offering points and special offers that will allow you to rack up rewards to exchange for gifts/treats. Do some research to see which deal will best suit your spending habits to maximise your finances. For example, would you be more likely to use vouchers in a clothes store when shopping for presents or points in a supermarket when buying the turkey? Another good deal to look out for is a credit card company that offers to pay you cash back on a percentage of your monthly spending.

2. They offer security

When you purchase goods such as a tablet on a credit card as a present for someone, provided the value is over £100, the purchase will be covered by Section 75 that allows you to get a full refund if the company goes bust or the item isn’t delivered. In comparison, if you use a debit card, you may find yourself out of pocket if the unexpected were to happen as they don’t offer any security.

3. They offer low interest rates

Long gone are the days that you got financially stung by credit card companies charging high interest rates, provided you choose carefully. Many providers now offer 0% interest for 12+ months and with careful planning, it is easy to take full advantage of these deals and spread the cost of Christmas out over a few months without incurring any interest.

When you use a credit card responsibly, it can be a great way to budget your Christmas spending. According to Will Becker, Chairman of TotallyMoney.com, you can avoid the panic of Christmas shopping with some effective planning: “Panic happens when we leave the planning and purchasing of Christmas presents until the last minute. Buying under pressure can lead to bad and sometimes costly decisions. You can also end up overspending when you buy presents bit by bit without thinking. You may not think a little bit here and a little there matters but it all adds up.”