How do you shop for Christmas presents amid a cost-of-living crisis? Take your time, know your rights and avoid falling short with a gift card.

With the holiday fast approaching, Kiwis will be shortening their sights on what to buy their loved ones in the coming months.

Yet soaring inflation in recent years has left a large hole in many people’s wallets, which may be adding undue pressure on their wish list.

Consumer NZ’s Sahar Lone joined Herald NOW this morning to discuss ways in which New Zealanders can avoid unnecessary spending and stretch their dollars further this Christmas.

Lone said while gift cards may seem like an easy present, they tend to come with an expiry date, “which often gets people in trouble and means that they don’t use them”.

Furthermore, if a company enters voluntary administration, receivership or liquidation, the external administrator appointed is not legally required to honour gift cards from the store.

Consumer NZ's advice is to avoid the traps and know your rights, especially when buying Christmas presents while under financial pressure. Photo / Alex Burton

This was seen in January when baby product retailer Baby City went into liquidation, leaving more than $300,000 worth of gift cards and loyalty points worthless.

“That’s why cash in an envelope can be just as good,” she said.

Lone also reminded consumers of what rights they have under protection laws such as the Consumer Guarantees Act and Fair Trading Act, as businesses that “don’t live up to their promise” can face substantial fines if they’re found to have breached them.

People should avoid paying for extended warranties on new items as well, because “they’re pretty much null and void” given there is already a standard for how long a product should last.

“The Consumer Guarantees Act effectively does the same thing,” she said.

“It means that you’ve got that back-up and that the company should take reasonable care.”

Consumer NZ's Sahar Lone discussed ways in which New Zealanders can avoid unnecessary spending and stretch their dollars further with Herald NOW.

Consumer NZ shares guidance on how long such appliances should last based on product testing, which should be referred to before an extended warranty is considered.

Furthermore, complaints can be taken to the Disputes Tribunal “if things do go wrong”, Lone said, noting that the fee to make claims only starts at $61.

“That’s money perhaps better spent than the extended warranty.

“They use our results as well to determine how long something should last.”

Some retailers may use tactics that try to pressure you into acting quickly and making a quick purchase, so Lone recommends ignoring the countdown timers and pop-up messages warning of limited stock.

“Airlines do that from time to time. So that’s something to be wary of,” she said.

If there’s a product you’ve already set your sights on, price comparison sites such as PriceMe and PriceSpy can be helpful indicators of whether you would be forking out more or less at your chosen retailer.