*1 in 2 determined to spend less money
* 36% of adults in the UK want to reduce their debt this year
* 1 in 5 who plan to consolidate their debt are urged to shop around for the best loan rates
With last year witnessing a constant increase in levels of consumer spending and debt, it seems that for at least half the UK it is time to rein this in.
The research reveals that just over a third (36%) of adults in the UK say that that they would like to reduce their debts in 2004. However, only 17% have plans to consolidate their debts this year, despite the fact that considerable savings could be made.
Commenting, Michael Senior, head of personal lending for The MarketPlace at Bradford & Bingley, said: "With the festive season over for another year, many of us will be feeling the effects of too much Christmas excess and our bank balances will no doubt be suffering from paying for all the fun and presents. Now's the perfect time for people to review their finances and give them the "January Sales" treatment by shopping around for the best bargains.
"While people's intention to reduce their debt is commendable, if they have multiple borrowings it would be a good idea for them to consider wrapping their debt into one personal loan, rather than paying them off individually. Not only will the payments be set and the debt cleared over an agreed period of time, borrowers are likely to save money on interest payments as the rate charged is often far lower than the standard rate on a credit card or store card. However, loan rates do vary so it's important people shop around for the best deals."
Senior continued: "For savvy borrowers who consolidate their debt, it is vital that they avoid being lured back into the spending habit by building up further debt on their credit/store cards or overdrafts. If you know you're someone who can be tempted, once your debt has transferred over make sure your old credit card accounts remain closed!
"If people haven't done so yet, I would urge everybody to put a financial review in their top ten list of New Year Resolutions. Whatever your situation, making sure your finances are healthy is important."
* How to put your money to work in the New Year
* Save money by consolidating debts on expensive store, credit cards and overdrafts to a personal loan with a low rate.
* Having paid off your debts, save the surplus money and begin a regular savings plan to build up an emergency fund (ideally three times net monthly income) which you can dip into if problems arise. You never know what's around the corner.
* If you are a homeowner, are you paying too much for your mortgage? Find out whether it may be cheaper to remortgage to a better deal and save money. Anybody who is still paying a lender's standard variable rate (SVR) should note that rates are currently available which are up to 2.7% cheaper than the average lenders SVR, which could result in a significant reduction in monthly outgoings. Even if your current deal includes early repayment charges, remortgaging could still be beneficial. Visit a mortgage broker to find out whether you could save money by switching.
* Look at all other outgoings such as insurance or lifecover. Prices of policies have come down in recent years ? you could save money by rebroking.
* Seek advice from a professional independent financial adviser who will help you put these New Year's resolutions into practice and will assist you in planning your finances and budget properly. You could be wasting money each month
