Savers urged to act now and avoid financial hangover

Brits are being offered tips on how to make quick savings ahead of the costly festive season with an estimated £180 a month up for grabs by trimming outgoings and hunting for hacks.

The savings experts at Tiger.co.uk have looked at easy ways to cut back on spending to help make £540 for Christmas.

In 2023, the total value of seasonal sales in the UK was estimated to be £85 billion, the highest across Europe, with Britons spending approximately £700 – £973, depending on where they lived in the UK.*

And although the cost of living may be beginning to stabilise, many shoppers will be looking for ways to save and make cash ahead of the costly festive season.

Looking at regular outgoings is the easiest way to see where you’re spending when you don’t really need to.

Being ruthless with streaming subscriptions could easily claw back vital cash, as could exchanging leftover holiday currency for sterling and checking you aren’t overpaying for extras in your insurance that you don’t need.

Ian Wilson, savings expert and Managing Director at Tiger.co.uk said: “As a third of us, 32%, admit to starting our Christmas shopping early, between August and October, now is the time to be on the hunt for deals and save where we can to help avoid the stress of last-minute expenses.* 

“Christmas can be the most expensive time of year, but by taking a few simple steps, you could save £180 a month, that’s nearly £600 by Christmas time. Shopping around for deals, buying early and taking advantage of online discounts, helps ensure you get the best value for your money and trim off excess expenses.

“It’s also worth reviewing your insurance policies — opting for multi-cover plans could reduce costs significantly such as multi-pet or multi-car cover. And for those who’ve built up loyalty points throughout the year, now is the perfect time to make use of them for gifts, groceries and exclusive access to sale events.

“By starting to save now and being proactive, Britons could enjoy a festive season without the financial hangover in January.”

Tiger Tips on how to save for Christmas:

Trim streaming subscriptions – potential monthly savings, £7.99 – £46.95**

Take a look at your current subscriptions and see if there are any you’re not using or could cancel – there may be free trials elsewhere you can take advantage of.  Taking the most popular top five streaming sites, the cheapest is £7.99, if you subscribe to all five that’s £46.95 a month that could potentially be saved for Christmas.

Use second hand selling sites – monthly earning potential of £77.43 (dozen items a month)***

If you have clothes you don’t wear or kids toys that would make a brilliant Christmas gift for someone else, think about putting them on selling sites to make a few pounds ahead of Christmas – averaging £6.45 an item.

Don’t forget holiday currency – potentially up to £50 annually

Check for any leftover currency that you could change back to sterling. A recent survey by Tiger.co.uk revealed over half of holidaymakers (56%) come back from trips with unspent currency – with only 12% changing it back. Over a third come back with over £50 worth of international notes and coins.

Check Insurance – estimated monthly savings £3.83****

Make sure you’re not over-insured and aren’t shelling out for something you’re already covered for. For example, some insurance policies include breakdown cover as standard – so if you pay for breakdown cover separately, cancel and save yourself a significant sum.  The average annual standalone breakdown insurance policy is £46 so a significant potential saving.

Research credit cards – could save £10 a month

If you have debt in various bank accounts, think about doing some research on debt consolidation – moving all your debt to one easily managed place with less or no interest – it could create substantial savings. However, it’s important to speak to a qualified financial advisor before making financial decisions and remember these solutions are often only temporary before interest rates start to climb. Interest on an overdraft account can range from 19-40%, depending upon the size of the debt, the monthly fee could be around £10 a month for £1000 worth of an overdraft – consolidating the debt to a 0% APR credit card could save you approximately £120 a year – as long as it is paid off on time.

Shop at the right time – estimated saving £21.90 a month (33% off car insurance)
£810.25 is estimated to be the UK average car insurance cost – data shows by renewing between days 15 and 24, customers could save 33-45%.

Utilise cashback sites – up to £53 savings a month

Do some research around cashback sites. In a nutshell, they offer rewards to incentivise customers to shop through their site. The cashback could be small or much bigger depending on where you purchase from and how often you use it – popular rewards platforms say they could save you up to £700 a year.***** 

Tiger.co.uk helps customers find real savings that help make a difference.

References:
*https://www.statista.com/statistics/1191944/average-christmas-spending-uk-by-region/
https://www.statista.com/topics/3157/uk-christmas-shopping/#topicOverview
**https://www.radiotimes.com/tv/what-to-watch-tv/best-streaming-service-uk/
***https://theslownotion.com/blog/seller-stats-year-2021
****https://www.whatcar.com/advice/owning/which-is-the-best-breakdown-service/n1215
*****This £700 savings figure was calculated using the average weekly household expenditure data provided by the Office for National Statistics’ Living Costs and Food Survey 2019 and the average % savings available through Tiger Rewards. Using these figures as an example, an individual could save up to £700 a year using the platform. The savings you could achieve are dependent on your personal spending habits and how many discounts you use through Tiger Rewards.
A Tiger.co.uk survey showed 32% of people started their Christmas shopping early to try and create savings (10% August, 8% September, 14% October) Sample size 1800, October 2023)