IT is called the most wonderful time of the year, but Christmas is less good for your wallet.
Families can spend up to £1,800 on the big day, says MoneySuperMarket.
So before the expenses begin, now is a good time to review your finances and see where savings can be made.
Amy Knight, from personal finance website NerdWallet, says: “Decluttering your monthly outgoings provides a clear picture of how much disposable income you have, vital for the savvy shopper.”
Harriet Cooke draws up a checklist guide to finding some extra cash before December 25.
REVIEW BILLS
EXTRA CASH: £12
CHECKING what you spend on energy, broadband and mobiles and switching to a cheaper deal, if you can, will immediately ease your monthly outgoings.
With the energy price cap having just risen by ten per cent to £1,717 a year for the average house, it’s especially important to look at your fuel tariff.
Switching to a competitive deal, such as EDF’s new Essentials V8, would mean a typical household would pay £1,628 over the year, saving around £89 on a variable tariff.
Switching now could save you around £15 before Christmas, and if your old account is in credit, you can get a rebate from your supplier.
Use a price comparison site such as Uswitch or Compare The Market to see how much you could save, as British Gas and E.on Next are also offering rates around four to five per cent cheaper than the cap. If you are not keen on computers, ring your supplier.
The same goes for your broadband and mobile phone provider. Give them a call and ask if your fixed deal has ended. If it has, discuss switching to a cheaper one that provides an equivalent service.
SELL STUFF
EXTRA CASH: AROUND £100
The best option is often posting locally on Facebook’s Marketplace[/caption]
THE months before Christmas are the perfect time to declutter to make way for new gifts.
Vlatka Lake, from self-storage company Space Station, says some of the most wanted second-hand items include golf clubs, selling for an average £100 on eBay, phones, clothes, which bring in £30 a piece, bikes at £270 and watches for £170.
The best option is often posting locally on Facebook’s Marketplace, so local buyers can collect the item.
Or you can list goods on sites such as eBay or Vinted, which is great for second-hand clothes. But you will usually have to post what you sell.
If this sounds like too much, enlist the help of a trusted tech-savvy friend or child, and split the proceeds with them.
SWITCH BANKS
EXTRA CASH: £200
Nationwide are currently offering £175 to customers switching to their 1st or FlexDirect accounts[/caption]
ONE of the easiest ways to get some extra cash is by switching current accounts — and your new bank will do all the work for you.
First Direct and Nationwide are currently offering £175 to customers switching to their 1st or FlexDirect accounts, respectively, while Lloyds is offering £200 for moving to Club Lloyds.
Aside from the bonuses, which will be paid by Christmas, all have different perks.
The First Direct account offers a £250 interest-free overdraft, which is great if you are often in the red.
Nationwide gives up to 5 per cent interest on £1,500 for 12 months, with 1 per cent cashback on debit card spending.
Club Lloyds has a £3 fee unless you pay in at least £2,000 a month, and offers a choice of either 12 months of Disney+, six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine such as Good Housekeeping.
SELL CURRENCY
EXTRA CASH: AROUND £53
Exchange your leftover foreign currency for an average of £53[/caption]
TRAVELLERS returning from abroad have an average of £53 of leftover foreign currency, according to Tesco Bank.
Ban Mahsoub, from the bank, said: “This could be exchanged back into sterling and provide a welcome boost for any Christmas savings.”
Try the Travel Money Max tool at moneysavingexpert.com to find out which bureau offers the best rate of conversion.
This week, Currency Online Group will give £82.65 for 100 euros, whereas Waitrose will pay £76.13.
CHECK BENEFITS
EXTRA CASH: VARIES
ARE you getting all the government help you are entitled to? Check at turn2us.org.uk.
To apply for Pension Credit — which pays an average £75 a week — call 0800 99 1234 or visit gov.uk/pension-credit/how-to-claim.
‘We split earnings which is great for doing no work’
LIFESTYLE coach Caroline Lamont, 48, from West London, made some extra cash by enlisting the help of a school mum friend to sell her unwanted clothing.
She said: “I do sell old clothes on Vinted but it takes time to list them, label them and drop them off, and you also get buyers trying to negotiate the price. It doesn’t always feel worth it.
“For more expensive clothes that I don’t want any more, I’ll pass them to my friend who runs a pre-loved pop-up shop, as she can get a higher price for them.
“She sold my old Maje raincoat for £100, which I’ve had for about six years but never really worn. And also a ten-year-old pair of All Saints leather trousers for £70.
“We split the earnings in half, which is great for doing no work. Having a savvy friend to help is great if you don’t like selling or don’t have time.”
Amex users frozen out
A MAJOR credit card company has been inundated with calls from customers after mystery payments appeared on their accounts.
American Express users said they could not get through to its helpline to query the amounts earlier this week. Others said they could not resolve the issue with the company’s live chat.
Many have been unable to use their credit cards, which have been frozen. Among those affected is Terry Pierce, 37. The company director, from London, was travelling for work when he began to receive texts asking him to approve transactions he had not made.
Four payments totalling £18.92 were taken from his British Airways American Express Premium Plus Card. When the father-of-one tried to contact American Express, he was left on hold for four hours.
He said: “It’s been so much additional stress. My card is frozen so I can’t use it. I have no idea of the source of these transactions.” We asked Amex about its helpline issues and if it was aware of a bigger issue.
A spokesperson said: “Our specialist fraud team thoroughly investigates all fraud claims and American Express members are not liable for this kind of unauthorised charge.”
It is understood that Amex has added extra resources to its call centre to reduce wait times.
If you think your credit card has been compromised then call your bank so it can freeze your card.
Usually you will be reimbursed for charges you have not made.
By Adelle Cook
Homes face winter bite
NINE million households have not got any credit built up on their energy accounts ahead of the winter months, research has found.
The study, carried out by USwitch, revealed that this is a slight improvement on last year though.
Fifty-nine per cent of homes do have a credit balance, averaging £220, which is slightly down from £236 last autumn.
The study also found that 11 per cent of homes with an income of less than £20,000 already owe money to their energy provider.
Those in debt owe around £163 on average. Typically, customers build up credit during the less expensive summer months in preparation for using more energy over the winter.
Average household energy debt has fallen by 17 per cent from £216 to £179. Despite this, the average account balance is at a three-year low of £128.
Ahead of the autumn Budget on October 30, USwitch is calling on the Government to consider what more can be done to protect vulnerable consumers this winter.
Richard Neudegg, director of regulation at Uswitch, said: “Households use more energy over the winter, so for the majority paying via direct debit it’s ideal to have a cushion of about two months’ worth of energy credit at this point in the year.
“If your energy account is going into debt or you are behind on your bill payments, speak to your supplier as soon as possible.”
By Ellie Smitherman
