Who says there isn’t such a thing as getting something for nothing? Using our seven simple steps you can finance your Christmas costs this year, with minimal effort and without having to cut corners.
According to the Institute of Practitioners in Advertising, the cost of celebrating Christmas – including gifts, decorations, socializing and travel – will average £563 this year. For a couple that is a total spend of € 1,127.
Here’s how you can cover the costs for free.
The cost of celebrating Christmas – including gifts, decorations, fun and travel – will average £563 this year
CHANGE YOUR CURRENT ACCOUNT: £200
Several High Street banks are offering generous offers to new customers switching current accounts.
NatWest offers £180 for switching and First Direct £175. Lloyds currently has the most attractive switching bonus of €200 – a nice sum to pay for your Christmas shopping.
To qualify, you must switch to a Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum account.
In addition, you must transfer three active direct debits via the Payment Account Switching Service.
You are not eligible if you have received a switching bonus from Lloyds, Bank of Scotland or Halifax since April 2020.
All three cards have monthly fees. Club Lloyds is the cheapest of the three with a monthly fee of £3, which is refunded every month you deposit £2,000 or more into your account.
The transfer takes a maximum of seven working days and is handled by your new bank. Your balance will be transferred automatically and your old account will be closed.
Don’t just choose the account with the most attractive switching bonus. Check the reviews and terms and conditions of the account you are considering to ensure you choose the best account for you. For example, check overdraft fees if you regularly check yours, the bank’s track record in dealing with scam victims and how its online banking facilities compare to those of the competition. If you’re using a High-Street branch, make sure the bank you’re considering has one in a location that’s convenient for you – and that it’s not about to close.
USE CASHBACK WEBSITES WHEN ONLINE SHOPPING: £300
Cashback websites show you how much you can earn if you click on their links first
Using cashback websites requires minimal effort and according to cashback website TopCashback, users earn an average of £300 per year.
Instead of going directly to the website of the store you want to buy from, go to a cashback website first. These include TopCashback (topcashback.nl)Quidco (quidco.com) and Swagbucks (swagbucks.com).
Then click through to the retailer’s website from there and continue shopping as normal.
The cashback website records your visit to the retailer’s website and adds cash to your account.
For example, if you buy a Christmas gift from Asos via TopCashback, you as a new customer will receive 6.6 pct. cashback. Existing customers receive 1.11 pct. You can get up to 7% cashback from Selfridges, 5% from Clarks and up to 12% from Iceland.
These websites work because they receive commission from retailers when they refer customers to their websites. They then pay shoppers a portion of the commission they receive.
Adam Bullock, director of TopCashback, recommends that you download the browser extension. Once downloaded, you will receive an alert every time you shop on a retail website where you can earn cashback. It shows you how much money you can get and you can decide whether to continue. This way you don’t have to remember to visit a cashback website. Go to www.topcashback.co.uk/browserextension.
FIND A CHEAPER BROADBAND AND TV PROVIDER: £160
TV and broadband packages can vary enormously. Make sure you get the best value
According to consumer website Which?, switching broadband and TV providers saves an average of £160 per year.
If you no longer have a contract and are therefore no longer tied to a particular provider, there is a good chance that you can save money by switching.
Scan comparison websites such as Uswitch or Go Compare for the best deals. Don’t just go for the cheapest – make sure you find a deal that offers the broadband speed and TV services you need. Also check out online reviews.
If you’d rather stick with your existing provider, call them up and negotiate to get a better deal. Explaining that you plan to leave is usually a good negotiation technique.
Check out some comparison websites first so you have an idea of the deals currently available. That way you can tell your provider that you saw a competing offer and ask for a better or equal price.
Households switching from Sky saved an average of £235 per year, households switching from Virgin Media Broadband saved £165 per year and BT households saved £148 per year.
Even if you don’t have a TV package and simply switch broadband providers, you could save £105 per year.
CHANGE YOUR MOBILE DEAL: £67
According to Which? you can save an average of £67 per year by switching mobile phone providers. However, this rises to £146 for those who leave Vodafone for another provider.
If your current contract is ending or is about to expire, check MoneySuperMarket or Compare Market for a better deal.
If you want to keep your existing mobile number, you will need a Porting Authorization Code (PAC).
Call your network’s customer service department to obtain this. They must report this within two hours of the request. You can also text PAC to 65075. You must use the code within 30 days, after which you will need a new one.
Please contact the provider you want to switch to and provide the code. They will arrange the transfer.
If you’re still within the contract, mark the expiration date in your calendar so you can start looking for a better deal right away. If you plan to keep your existing device, you may be able to switch to a SIM-only plan to save money.
Negotiate if you do not want to change providers. It can save you an average of £61 per year. Which one? say.
GET CASH FROM YOUR ENERGY SUPPLIER: £220
According to the latest figures from comparison website Uswitch, households had a whopping £220 on their energy bills in October.
It is useful to have two months of energy credit on your account, so that you can cover the costs of higher bills during the winter months.
But if there is still an excess amount in your account, ask your provider to refund it to you. Unless you have a smart meter, you must first provide a current meter reading.
All the money back can go towards your Christmas expenses – or you can make some extra money if you put it into a high-interest savings account.
REFER A FRIEND TO YOUR ENERGY SERVICE: up to £75
If you’re happy with your energy supplier and have a friend who wants to switch services, refer them and you could earn up to £150.
British Gas has the most lucrative deal of the major providers. It offers a £75 Amazon gift voucher for both you and your friend if they switch from both gas and electricity. It costs £35 each if they only exchange one.
EDF Energy is still offering a Black Friday deal where you can get £75 for every successful referral you make – and E.on Next is offering £50 credit for both you and your friend when they sign up using your exclusive referral link.
You and your friend can get £50 each if you refer them to Octopus Energy and sign up.
For Scottish Power, you and your friend will each get £60 credit if they switch gas and electricity, and £30 each if they switch fuel.
The referral link can be found on your online energy bill.
The new provider will arrange the switch for your friend. It may take up to five business days, but if it takes longer your friend may be entitled to compensation.
Only switch to a rate that saves you money compared to your existing rate. Otherwise, you could end up paying more in utility bills than you receive from the referral agreement.
SELL UNWANTED CLOTHING AND SHOES: £125
Don’t leave old shoes and clothes in the wardrobe, you can sell them on sites like Vinted
Most of us have old clothes and shoes lying around the house, but these unwanted items can help pay for Christmas dinner.
According to the website VoucherCodes, households can make £67 from selling old clothes and a further £58 from selling old shoes.
You can sell your items on second-hand sales platforms such as Vinted (vinted.nl) or Depop (depop.com). Wash, steam and remove pills on clothes before advertising.
To use these platforms, you must create an account with a username and password and then upload photos and descriptions of the items you want to sell.
Take good photos because this is the first thing shoppers see when they scroll through. Write a good, detailed description, including the brand of the item and its condition.
TOTAL BANKED: £1,147
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