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Your Money > Family Finances Articles > New Year finances...
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By Sarah Modlock
Sales or returns Start by going through any unwanted Christmas presents and return as many as possible for a refund or exchange as soon as possible. You may not be able to face the shops so soon but if you put it off you may never get round to it or, more annoyingly, miss the cut-off for returns altogether. Retailers will make 29% more refunds on credit cards in December than in any other month, with the average amount per transaction refunded at £55, according to Halifax Credit Cards. "December and January are the most popular months for retail returns, so it's important to know your rights as a consumer," says Halifax's Ken Stannard, who highlights the additional benefits you get by shopping with a credit card: "Other than those rights afforded under the Sale of Goods Act, credit card users have additional protection on their purchases. Under Section 75 of the Consumer Credit Act, if the retailer refuses to issue a refund for faulty goods, for example if the shop has gone bust; the credit card company is equally liable for faulty purchases valued at over £100 and under £30,000. Additionally, if you have lost your receipt, a credit card statement can be used as a proof of purchase. But remember, the statutory rights apply to the person who made the purchase on their credit card, not the recipient of the gift, so the store could refund the money to the card and not to you." Whether payment was made with a credit, debit card or cash you have 28 days to return and item with its packaging, if you have a receipt. Some stores, such as Marks & Spencer, have a longer time limit of 90 days. Others, such as Argos, have 'special' Christmas return deadlines of the second week of January. If goods are faulty or not as described then you are entitled to a full refund and do not have to accept a credit note or replacement. This also applies to goods bought in sales, unless the defects were drawn to your attention or if they were obvious at the time. If you want to return goods because you don't like or want them, you have no legal right to ask for your money back. Many stores will still offer you a refund, credit note or exchange in these circumstances, but this is a gesture of goodwill and they are actually doing more than is required by the law. Of course there is always eBay for unwanted gifts or even the increasingly popular trend of 're-gifting' where you pass the dodgy bobble hat onto someone else (just not the person who gave it to you). If you're still in the black and the sales beckon then don't blow all your spare cash in one afternoon. Heading to the high street to browse at this time of year is lunacy unless there is something specific you really want. The most savvy bargain hunter will have a very clear idea of the things they want to snag and will buy them at knock-down prices. Other useful sources of information for shoppers: Two dangerous types of mail could be coming your way. The first is bills. The second is a slew of credit card and loan offers. The trick with both is not to panic. A loan offer may seem like the perfect solution to your January blues. After all, it will save you the trouble of looking around, right? Wrong. Chances are you don't need to borrow and if you do you can almost certainly find lots of better deals. Work out how much you owe and whether you need to borrow or can cut back in the coming months and pay off what you owe. Think about switching credit card debt to one offering 0% for balance transfers. If you must take out a loan then shop around properly. The loan or card offer which drops through the letterbox uninvited is likely to have a 'typical' interest rate with the rate you will actually pay only being decided when your application and credit check has been processed. You could end up paying something closer to 20% APR rather than the 14% emblazoned on the offer. Oh and your existing credit card company may try adding to your problems by sending credit card cheques. Shred them.
Getting paid early in December is great. But it does make January feel like it lasts forever. Take stock now and plan the month so you are not living on baked beans for the last two weeks. Avoid desperate measures such as withdrawing cash on your credit card. If you are painfully short of money, one option is to talk to your bank about getting an overdraft - or an extension to your existing limit. The longest month If you go overdrawn or break your limit without the agreement of your bank, you are likely to face charges and huge interest rates, not to mention a nasty letter or phone call. Useful links: |
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