Clare Francis, site editor at price comparison site moneysupermarket.com, said: "People should review their finances on a regular basis and the turn of year is a great trigger to do just that. We're all feeling the pinch at the moment and for those suffering an extra financial hangover from the festive period, recovery will be all the quicker if significant savings are made.
"A New Year's resolution to look for more competitive deals and products could easily lead to an extra £2,500 or more by next Christmas. The great thing about these savings is they can be made without changing your lifestyle at all."
Mortgage
With the landscape of the mortgage market changing on a daily basis consumers could be forgiven for sitting back and playing the waiting game. However, there are still savings to be had for many homeowners and remortgaging should be a priority for those not tied into their current deal. What looks like a small difference in rate can actually amount to a huge difference in monthly outgoings. Someone with a £150,000 25-year repayment mortgage could slash their monthly payments from £932 to £843 by switching from a rate of 5.50 per cent to 4.50 per cent. This reduction of £89 gives an annual saving of £1,068.
Personal loan
Despite recent interest rate cuts, personal loan rates have continued to rise. For those requiring a loan to get through the hard times or to fund a one off purchase, it is vital to shop around for the best rate as jumping in blind can end up costing a great deal. A family taking out a £10,000 over five years could save £163 in interest payments in just one year, by changing from a Mint Loan with a typical APR of 10.9 per cent to the Nationwide Building Society at 7.9 per cent APR.
Credit cards
There are still some very competitive 0 per cent offers on both balance transfers and purchases. Those who make the effort to choose the best deal to suit their needs will be rewarded. If a £2,000 debt on an ASDA Everyday Card at 17.9 per cent APR is switched to a credit card offering 0 per cent interest on balance transfers for the introductory period, such as the Barclaycard OnePulse Credit Card, there would be no interest payments in the first year. This amounts to an annual saving of £303 including the balance transfer fee. Additionally, store cards can be a real source of waste for consumers, especially after retailers have pushed them hard over the Christmas period. Based on a balance of £750 on a Topshop Account Card at 19.9 per cent APR, consumers could save £120 over a 12 month period by switching the balance to the Barclaycard OnePulse.
Savings
Millions of savers are losing out on significant amounts of interest because their money is languishing in poor paying accounts. An individual with £1,000 in the Halifax Liquid Gold account paying 0.25 per cent AER would receive £2.50 in interest over a year. However, by swapping to the Anglo Irish Bank, Easy Access Issue 2 account paying 4.55 per cent AER, they would earn £45.50 over the same period - an additional earning of £43 over the year.
Motor and home insurance
There are some great savings to be made if people ensure their insurance is up to scratch. Swapping motor insurance provider on a Ford Focus LX from Barclays, at £412 a year, to Swiftcover, at £257, will bag a saving £155. For a home in Milton Keynes over £127 can be saved by swapping buildings and contents insurance from Legal & General to American Express.
Utilities
Millions of households have never changed their energy supplier and are still with the firms that provided gas and electricity to their regions prior to privatisation. Londoners that have never switched, for example, will be receiving their electricity from EDF Energy while British Gas will be providing their gas. They'll be paying their quarterly bill by cheque or cash. However, despite last year's energy price hikes, a London household using an average amount of gas and electricity could save £321 a year by switching to British Gas' WebSaver 1 tariff and paying by monthly direct debit.
TV, phone and internet
Bundling your TV, landline and broadband can result in big savings. A recent study by moneysupermarket.com shows over two-thirds (70 per cent) of adults don't use the same provider for these services, and as a result could be missing out on saving almost £290 a year by taking out standalone products.
