UK making resolutions to clean up finances

According to recent figures from a survey, many consumers in the UK will be making a New Year’s resolution to clean up and more effectively manage their finances, making this the second most popular resolution behind weight loss.

However, experts predict that a large proportion of those making this type of resolution will give up in a short space of time, leaving them struggling with their finance for yet another year rather than getting them sorted out and reducing the financial burden that comes with being in debt.

For those that want to see this resolution through there are a number of steps that can be taken. Consumers with a high level of unsecured debt such as credit cards, small loans, and store cards could wrap up their smaller unsecured loans with one secured or unsecured consolidation loan, making repayments more affordable and more manageable. However, it is important for these consumers to close other lines of credit such as credit and store card accounts in order to avoid the temptation of spending on them again and getting back into a high level of debt.

This may also be the time to start looking at saving money on your financial commitments, such as finding a better mortgage deal through remortgaging, hunting around for cheaper home, life, and even car insurance, transferring your credit card balances on to a 0% balance transfer card, and opening a savings account that offers a good rate of interest that will enable your money to work harder for you.

Experts estimate that consumers could save thousands of pounds by taking a look at their current financial products and situations, and taking steps to cut the amount of interest that they will have to pay, as well as to cut back on the repayments that have to be made on these commitments.

Alisdair Milton
2nd January 2007

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