Avoid Mistakes With Your Christmas Shop

By Author: Alisdair Cosgrove
Total Articles: 184
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As we all know Christmas is just around the corner, and whilst this is an exciting time of year it can also be a very expensive time of year. Many people have lots of presents to purchase for their loves ones, but money has been very tight for many households this year due to rising costs and the global credit crunch, so funding this Christmas could be particularly difficult for some.

In response to the financial situations for most people, and the subsequent lack of spending, many shops have cut the prices on many items hoping to increase spending levels, which means that many of us could enjoy greater affordability than we had hoped this Christmas.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.

Make sure that you actually benefit from these cut price goodies by avoiding the moneymaking traps that many retailers use to part you with extra cash and boost their own profits, as otherwise you will lose the benefits of being able to get the discounts that shops are offering.

One of the moneymaking offerings that retailers ...
... will often try to push onto you when you purchase certain items such as jewellery or electrical goods is insurance, but this can be a complete waste of your money. This is because the goods that you buy will usually be covered under your home insurance, or the home insurance of the person that you are buying for, so you are literally paying money for nothing.Another extra that most retailers will try to sell you when you buy certain items is an extended warranty, but if the item that you are buying is not really expensive then there seems little point in paying for expensive additional protection, as you may be financially better off just replacing it if something goes wrong outside of the manufacturer's free guarantee, which is normally at least twelve months.

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.You also need to be extremely cautious about taking on store cards, which many retailers offer when you get to the till. Don't be tempted by these cards, as you will be charged astonishing rates of interest on any outstanding balance, making the items that you buy far more expensive. Also, the application process is carried out at the tills and can be lengthy, and at the end of it all in the current financial climate you may be turned down anyway, and this can knock your credit rating.

Just remember when you are out shopping that there is a reason why retailers offer all of these extras, and that is because they make a lot of money from selling them. In many cases the added extras offer little or no benefit to the consumers, so don't fall for persuasive sales tactics.
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 credit card rewards along with great annual travel insurance and also personal loans. Visit today to find a great deal or read one more of Alsidair's great articles.