How to shop for Christmas with more money

We look at ways to maximize your Christmas spending, including cashback and credit card rewards

Before December 25th, Britons spend hundreds of pounds more on everything from Christmas gifts to festive outings.

The Bank of England reported in December 2024 that households spend an average of 713 more in December, which is 29% more than a typical month.

According to a YouGov survey conducted in November 2025 among 4,243 Britons, the average amount spent on gifts is 300. The average cost of festive food and beverages is £150, and travel expenses could deplete your savings by about £50.

As Christmas Day draws near, we examine ways to increase the value of your money this winter.

Safeguard your credit card while you shop.

Credit cards have several benefits when used properly.

They have Section 75 protection, which is a significant advantage. Section 75 of the Consumer Credit Act will apply if you make a purchase with your credit card that costs between £100 and £30,000. If there is an issue with the products or services you have purchased, or if the business from which you purchased them fails, the credit card company is equally liable with the seller.

This protection does not apply to debit card payments. However, you can request that your bank reverse the transaction if there is an issue, such as the product not arriving or being defective, and the company declines to reimburse you. Chargeback is the term for this, and it can occur with either a credit or debit card.

Chargeback isn't a legal right, in contrast to Section 75. Although claims may be successful, there is no assurance that your card issuer will be able to retrieve the funds through chargeback, and the trader must acknowledge that your claim was warranted.

The best credit card rewards you should not pass up.

Make your purchases pay off by accruing rewards. Certain credit cards come with cashback or points that can be redeemed for coupons or airline tickets. You may receive rewards for your purchases if you use these cards to make purchases you had planned to make anyhow.

However, you must be able to pay off your debt in order to avoid paying high interest rates; otherwise, the benefits are essentially eliminated.

Depending on how and where you spend your money, the ideal rewards credit card will vary. The MandS Rewards Credit Card, for example, awards one reward point for every dollar spent at M&S, but only one point for every five dollars spent elsewhere. After that, the points can be exchanged for M&S vouchers (200 points are worth two in vouchers). As a result, a frequent M&S customer may find the card more appealing than someone who doesn't frequently shop there.

Similar to this, the British Airways American Express Credit card offers a companion voucher when you spend £15,000 on the card during a card membership year, as well as one Avios point for every £1 spent. It also offers a welcome offer of 5,000 bonus Avios when you spend £2,000 in the first three months. If you want to travel overseas, this might be appealing, but if you would rather stay closer to home, you might not benefit as much.

Additionally, eligible American Express cardholders can take advantage of additional cashback offers. For example, if you spend 600 at one or more participating stores in the Bicester Village outlet shopping center, Amex is currently offering 60 in statement credit. The deal is good for one card and is valid through December 31. To qualify, you must save the offer to your card using the Amex website or app.

In a separate article, we examine the best American Express credit cards.

Receive cashback for your purchases.

One method to receive a refund for your Christmas purchases is through cashback credit cards. By using cashback websites like Quidco or TopCashBack, you can make money while shopping online. When you click through to reputable retailers and make a purchase, they give you a percentage.

These websites make use of affiliate links, which allow the retailer to monitor when a customer visits them through the cashback site. The retailer then reimburses the affiliate for bringing the customer to them. Then, some of that is shared with you by cashback websites.

Chase presently offers 1% cashback on qualified debit card purchases for the first year. Other banks also provide their customers with cashback. There are some exceptions to the monthly cap of 15. The cashback has been limited to fuel, groceries, and daily transportation since April 7. Purchases must be made in the UK and the Channel Islands and paid for in sterling.

Customers with personal current accounts can take advantage of individual cashback offers from Monzo, which usually range from 2% to 10%. For example, the challenger bank is currently giving customers who shop at Not on the High Street 10% cashback up to 30%. You must activate the offer on your account before making a payment because it is a limited-time offer.