Paying too much this Christmas?

It's now cheaper to shop in New York and Paris than in Dublin. Ed Power offers tips to keep the seasonal splurge under control.

This month, in the run-up to Christmas, we are likely to splurge €2 billion in the shops. And that's just in Dublin. Many normally prudent people will surrender to the seasonal frenzy, notching up debts they will regret come January or treating themselves to luxuries they could buy more cheaply in the sales.

Credit-card users should tread especially carefully, warns Michael Kilcoyne, the president of the Consumers' Association of Ireland. "Only spend what you know you can afford. Otherwise credit cards can be a fast track to debt. Never use credit cards to borrow large amounts of money. Go to a credit union, where interest rates are lower and payment terms more flexible."

According to Mintel, a market-research group, credit-card debt in the Republic rose from €620 million in 1998 to €1,095 million in 2001, an increase of €475 million, or more than 75 per cent. With the economy inching towards recovery and consumer confidence surging back, we are likely to plunge deeper into the red this Christmas.

The consumers' association recommends avoiding luxury purchases until the sales. "If you are about to buy a suit or expensive dress, take a moment to remember that the same item will probably be available at a vastly reduced price in under a month. You can probably afford to wait that long," says Kilcoyne.

Not that there is evidence of retailers raising prices for Christmas, the association says. With competition in the high street growing ever fiercer, shopping around can deliver significant savings. "It's never been more worth your while to hold back and compare prices," says Kilcoyne. "You might see something in department store A that is on sale at a much lower price in department store B. Taking 15 minutes to go and compare prices could save you a fortune."

And hoard receipts, he says. Without proof of purchase, shops are not obliged to replace faulty goods. And if you have received a faulty gift, don't be slow to ask for the receipt.

"There may be some reticence about looking for a proof of purchase from the person who gave you a present. But if you don't do something about it, then they may as well have never given it to you in the first place."

Kilcoyne advises caution if you are buying gift tokens, particularly those with use-by dates. These are often tucked away at the bottom of the voucher - and can be set for as soon as three months from day of purchase. The consumers' association believes shoppers should refuse to buy tokens unless they are open-ended. Businesses are within their rights to include use-by dates - it is for consumers to signal their disapproval by going elsewhere.

For people on low incomes the consequences of overspending can be long term and devastating. According to Susan McDonnell of the Money Advice & Budgeting Service, moneylenders are a tempting solution. They often charge up to 30 per cent interest, however.

"We encourage people to go to the credit unions, but for many the moneylender at first seems the easier choice," she says .

Shoppers should also be more safety conscious, according to consumer representatives. The perils of credit-card fraud are well documented - that you should fiercely guard your card number hardly needs repeating.

But caution is also necessary when using ATMs, says Kilcoyne. Avoid taking cash from isolated machines and never throw away your receipt: it can contain valuable information, not least your bank balance. "If a mugger picks up your receipt and sees you've got €5,000 in the bank, then he knows it's worth his while robbing you. The odds of being held up as a result may seem low, but you can't take too many precautions."

But the most important precaution at this time of year is perhaps the most obvious: spend within budget. If you cannot afford it, try to learn to live without it.

Pricewatch continues to receive many letters and e-mails from readers who have noticed discrepancies in the prices they are charged. Here is a selection of recent complaints.

One reader paid €15 for a Villeroy & Boch snowman at Brown Thomas; the reader's sister bought the same decoration for €9.50 at La Maison du Villeroy & Boch in Paris.

The Complete Far Side Collection by Gary Larson costs $94.50 at Amazon.com. Including five- to 10- business day shipping, the total was $107.48 (about €88). The book set costs €142 at Waterstone's.

Another reader had been paying €50 for a Nars Cosmetic Multiple stick at Blue Eriu in Dublin. Then she noticed that, when Brown Thomas began stocking the Nars range, the same stick cost €40. Blue Eriu soon matched the Brown Thomas price: a good example of the benefits of competition.

A reader in Howth found a Palm Zire 71 handheld computer for $299 (about €245) on Palm's US website. The same computer costs €345 from the company's Irish website. The US site won't ship to Europe.

Another reader was charged €25.38 for a litre of Hammerite metal paint at Lenehans of Capel Street in Dublin. She later saw the same tin for €18 at Phibsboro Hardware, a difference of €7.38, or 41 per cent.

A Dutch reader living here recently discovered that a bottle of red Chilean wine he had been buying at Lidl in Ireland for €4.99 was selling at Lidl in the Netherlands for €1.99.

A reader working at the International Financial Services Centre in Dublin had been paying €2.80 for a sandwich at the local Mace. Overnight the price went up to €3.99. He says that, because of its location, workers at the IFSC are restricted in where they can shop - and he thinks that Mace, Spar and other shops are taking advantage of their captive market.

A Kerry reader found a Kodak Max 2CR5 six-volt lithium camera battery for €12.70 at a photo shop in Killarney, Co Kerry. The same battery cost €7.50 at a pharmacy in Killorglin, a difference of €5.20, or 69 per cent.

Of all our reader's gripes, we receive most about prices at Tesco. This probably has a lot to do with it being one of the largest supermarkets in the country, with a proportionately large base of price-conscious customers. The most recent observations were about an increase in the price of a 200-gram bar of Tesco Nut Chocolate, from €1.15 to €1.49, a jump of almost 30 per cent.

Another reader, shopping online at Tesco, ordered a 2.5 kilogram bag of Pedigree Complete Puppy Chicken Rice & Veg, which the website advertised for €5.99. When it was delivered he had been charged €6.99. When he queried the discrepancy with Tesco Online, he was told that the prices quoted on the grocery website are guides only and can vary slightly from day to day. The reader argues that a difference of €1 - in this case an extra 17 per cent - is more than slight.

E-mail: pricewatch@irish-times.ie