Get ready for the New Year sales bargains

For many people the excitement and chaos of Christmas is by no means that end of a hectic period, as just as the New Year celebrations are over it is time to hit those all important January sales, where shoppers can enjoy picking up an array of bargains from shops and retailers all over the country. The January sales have become a real British institution, and many consumers look forward to this time of year, when there are bargains galore to be had and some die hard shopping to do.

If you are the type of person that likes to do the bulk of their purchasing in the January sales, when you can pick up everything from home furnishings to new clothes for a fraction of the usual price, then there are a number of ways to fund your purchases. Some of us may be lucky enough to enjoy an influx of retail vouchers or cold hard cash as Christmas presents, which gives us the opportunity to go out and enjoy the bargains and delights of the January sales, but for others there are various other options available to help finance your bargain hunting shopping spree.

Using savings or Christmas money

Of course the ideal way to fund your New Year’s shopping trip is through any spare savings that you may have to using any Christmas money or vouchers that you have been given. With the expense of Christmas and New Year barely over, however, many people may have cleaned out their savings accounts, which means that alternative means of funding will need to be looked at. If you are an avid shopper and you do like to spend time picking up bargains in the sales it is a good idea to think ahead and try and start savings from February onwards each year on a monthly basis. This means that you can put a little aside each month for eleven months of the year, and on the twelfth month, which is January, you can use your funds to hit the sales and shop till you drop without having to get into debt to do so.

Using a credit card to fund your spree

If you don’t have any savings left to speak of but you are determined not to miss out on the sales then a credit card may be the most sensible solution. You should make sure that you find the credit card that is best suited to your needs so that you can make the most of your shopping spree without being hit by costly interest charges. The whole point of shopping in the January sales to is save as much money as possible on your purchases, so there is little point using a credit card and then being charged interest, as this will simply counteract the savings that you have made.

If you are able to clear the balance on your credit card the following month then the best card to fund your shopping spree is a rewards based card. You will be able to use your card to fund all of your purchases in the sales up to the card’s credit limit, and for every pound that you spend on purchases you will earn rewards, such as cash back, air miles, retail rewards, discounts, or travel rewards, which can all quickly mount up if you are spending a lot in the sales. You will not have to pay any interest on your spending because you will be repaying the balance in full at the end of the month, so you can really benefit from using one of these cards. In fact, if you have savings or Christmas money that you are planning to spend in the sales it may be a good idea to use one of these cards instead and then use your savings and Christmas money to repay the balance within the interest free period, as you can then enjoy added convenience and ease, and you can earn rewards on your sales purchases.

Of course, after all the expense of Christmas you may not be in a position to clear your balance right away, and you may be looking to spread the repayments on your January sales shopping. A 0% purchase credit card will enable you to do this, and you can put all of your purchases on to the credit card and then spread the repayments over the specified interest free period without being charged any interest. However, do make sure that you repay the balance in full within the interest free period otherwise you could get charged a small fortune on your remaining balance. If, for any reason, you have not cleared your balance as the end of the interest free period approaches you may want to look at transferring any remaining balance onto a 0% balance transfer card so that you can enjoy an extended period of interest free credit. However, do bear in mind that most 0% balance transfer cards charge a transfer fee of around 2-3% of the amount being transferred so it is best if you can clear the balance in full without the need to transfer.