'Tis the season to be spending, but are you getting ripped off or buying things you don’t need? Picture: istock

From overpriced hampers to paying a premium for travel, consumers face a raft of cash traps that are sure to take the sparkle out of anyone’s festive season.

As consumers spend up this holiday season many remain unaware they’re probably paying a premium for everything from gift cards to holidays.

Money Expert at finder.com.au Bessie Hassan told news.com.au many consumers sabotaged their Christmas spending simply through falling for hidden costs, fees and other traps.

“They are paying excessively more for certain things at this time of year as retailers and lenders look to take advantage of the Christmas rush,” Ms Hassan said.

“People get swept up in the Christmas spirit and they let their guard down when it comes to their finances.”

Ms Hassan said it wasn’t just in store where shoppers got caught out either with many hit with hidden online surcharges too.

Consumer advocacy group Choice has also warned shoppers to be on the lookout for extra hidden costs and to make their purchases, but to check them twice.

Choice spokesman Tom Godfrey said it was easy for consumers to get caught out in the festive rush but urged them to take a bit of caution when it came to certain spends.

It’s the most wonderful time of the year for shopping, but consumers should watch out for hidden costs.Source:Getty Images

“As the festive season gets into full the swing and we’re dazzled by retailers bright lights and flashy claims,” he said.

“It pays to look past dodgy credence claims and over priced products as some companies seek to cash in on Christmas.”

Mr Godfrey said it was little things which often caught shoppers out time and time again.

Here are just some of the ways shoppers can avoid the Christmas spending traps.

GIFT CARDS

The may seem like a great idea for that hard to buy for person but they can come with a catch or two.

Ms Hassan said gift cards paid for with credit cards, for example, may be charged as a cash advance.

“Card providers can categorise gift card transactions as cash advances because they are cash equivalents or cash substitutes,” she said.

“These transactions attract a high cash advance fee and the cash advance interest rate.”

Choice warn some may also have an expiry date which means they never get spent.

“When you buy a gift card you’re basically purchasing terms and conditions for your loved

one and taking on risk,” Mr Godfrey said.

“To avoid the gift card trap read the fine print and check for any activation fees or short expiry dates.”

Gift cards are a great idea but look for the fine print.Source:Supplied

FOOD/DRINK

We all are guilty of buying that extra bit of food we don’t need but according to Choice some items could be costing us more than others including eggs and water.

“Our research has shown consumers can pay double the cost of caged eggs for fake free

range eggs, so don’t cough up extra cash for this dodgy credence claim,” Mr Godfrey said.

And when it comes to drink Choice recommends there’s one we are more willing to pay for this year to stay hydrated after a stack of Christmas parties.

“Buying bottled water is unlikely to make you feel better once you realise it costs almost 2000 times more than the free stuff out of the tap,” Mr Godfrey said.

PRE-CHRISTMAS SALES

It’s easy to think shopping early may score you a bargain but Finder reveal this can have its own hidden costs.

“Retailers are starting Christmas sales early — but often the discounts don’t come close to the Boxing Day sales,” Ms Hassan said.

She said while there may be minor discounts offered it often paid to wait or use coupon codes from retailers offering different discounts post Christmas.

“Make a note of items you like, brands and costs, then try to find it cheaper online,” she said.

“If you can wait for the day after Christmas, it could pay dividends on your bank account.”

You can save in sales leading up to Christmas, but can save a lot more after. Picture: Ben Stansall/AFPSource:AFP

CREDIT CARD CHARGES

While most of us are guilty of giving the credit card a workout, this is often increased in the lead up to Christmas.

But according to Choice, this isn’t without its catches and high interest credit cards in particular could return to give you a nasty shock in the new year.

“If you are using a credit card to purchase presents this Christmas, and intend to carry the

balance forward, avoid using a credit card from one of the big four banks,” Mr Godfrey said.

“With interest rates as high as 20 per cent these cards will leave you with a fiscal hangover in the New Year.”

CHRISTMAS HAMPERS

These gifts might seem like a good idea but buying pricey hampers could end up costing you more than you realise.

And although buying a ready-made gift sounds like it will save you time, Choice warn it could cost you more in other ways.

“Hamper companies promise to deliver everything you need for your Christmas feast,” Mr Godfrey said.

“But the goods may be overpriced compared to the cost of the same products purchased online from Coles and Woolworths.”

INFLATED HOLIDAY PRICING

According to Finder.com.au research, Aussies pay up to twice as much for hotel stays and flights at Christmas than at other times of the year.

In fact, a finder.com.au analysis of ten destinations popular with Aussie travellers found they cost on average 41 per cent more to visit over the festive season.

While recognising this is when most Australians are forced to take their leave, Ms Hassan said it meant they ultimately paid more for holidays. But there were ways to save.

“A house swap could save you big dollars,” she said. “Comparing hotel rates and actively searching for discounts can also help you save on accommodation.”

Online Christmas shopping definitely has its benefits, but there could be hidden costs this time of year. Picture: istockSource:Supplied

ONLINE FEES

Shopping online is convenient but isn’t without its hidden catches.

According to Finder, shipping costs are often higher at this time of year as the big day approaches due to more expensive faster shipping and greater holiday-related volumes.

Ms Hassan said the only way to really avoid this was to complete your shopping early.

“Be organised and order early so you can use free shipping deals from retailers,” she said.

“Also, most retailers have free shipping if you spend a certain amount in one transaction so don’t forget to read the fine print before you start shopping online.”