Financing Christmas

No-one wants to get into debt for the festive period, but if you have to get Christmas on credit you may have looked into a loan, but have you considered switching your current account? And if you’re choosing a credit card, look for one that reduces interest repayments or offers cashback. Let’s take a look at ways to finance your festive spending.

Transcript

Christmas, is well and truly on the way, so in this video we’re going to look at the ways in which you can fund your festive spending; from current accounts to credit cards.

If you’re looking to cut the costs of Christmas and you’ve got a lot of people to buy for, you could buy a communal present, like a board game or if it’s an adult, buy a scratch card or a lottery ticket.

1. Swapping your current account to another bank could net you free cash.

If you’re stuck for ways to fund this Christmas, your first port of call could be your current account. If you’ve never switched a current account, now could be your ideal time. Not only are some banks offering free over draft facilities, they’re also offering incentives to switching- cash incentives that could pay for Christmas - (such as first direct).

2. 0% purchase credit cards could spread the cost.

If you’ve recently switched current accounts or you’re happy with the one you’ve got, it could be time to try a credit card.

0% credit cards don’t offer free money, but what they do offer is a way to spread the cost of purchases over a certain period of time, before you have to pay any interest. Even if your credit score is not entirely up to scratch, there are some credit builder credit cards out there or credit cards for poor credit that come with a 0% purchase period.

If you’re in a position where you can use your savings to cover the cost of Christmas, you may be tempted to do just that, but before you do it could be worth considering a cash back credit card.

Cash back credit card.

A cash back credit card means you can earn money as you spend it. So, if you do your Christmas shopping on one of these cards and then pay off the balance in full with your savings, you’ve effectively created your own discount, because you get money back as you’ve spent it.

Even if you miss out on cyber Monday, online retails are often cheaper than the high-street. So, however you choose to fund your festive spending this Christmas, don’t buy the first thing you see, shop around to find the best deal.

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