Prevent a budget blow out with CHOICE'S shopping tips

With Christmas here, consumer watchdog CHOICE is offering an early present in the form of some yuletide shopping tips to keep the post-holiday budget blues at bay.

Don't overspend

• Get your family together and put a limit on the amount spent on presents.

• Alternatively, have a Kris Kringle where everyone buys a present for just one other person.

• Shop with a list to avoid impulse buys. Set yourself a budget and stick to it.

Shop smart

• Shop around for the best deal.

• You can use online shopping sites to research prices.

• Last year we found the price of typical Christmas gifts could vary considerably " including a difference of up to $160 for the same digital camera and up to $15 for a book with a RRP of $30.

• If you are not sure what to buy, a gift voucher can be a good idea but check carefully for time limits and other restrictions.

Consider your payment options

• Pay cash if you can " and ask for a discount.

• Paying cash avoids big bills later and gives you bargaining power.

• Lay-by is a good option to avoid overspending on Christmas but check cancellation fees and charges.

• Use only one credit card and avoid high-interest store cards.

• Pay your account in full if possible.

• If you can't repay, use a credit card with a low interest rate and a fair way to calculate interest. Bank of Queensland and the NSW Teachers Credit Union are best.

Plan Your Personal finances ahead

• Open an online savings account to be better prepared next year - $10 each week will give you over $500 by next Christmas. The best one currently is Bankwest Direct Telenet Saver Account with an introductory interest rate of 6.8 per cent.