Christmas has come and gone but many Brits will have little more to show for it but hefty bills.
Why not try a New Year financial detox to help with your money woes and come next Christmas you’ll be quids in.
Many people found their finances squeezed in 2011, with rising living costs, low or no pay increases and the soaring cost of car insurance leaving many with less cash in their pocket.
However, research by savings bank ING Direct has found that the determination among Britons to sort out their finances is strong.
Around 39 per cent of Brits say restocking their savings is their top financial priority, according to ING Direct’s latest Consumer Savings Monitor report.
Confused.com’s resident money expert Chris Griffiths says the New Year is a perfect time for a financial detox.
Financial fresh start
Griffiths says: “The New Year is about fresh starts and this applies to your finances too.
“Think of it as decluttering your finances. And it’s not complicated either. It simply involves being a little bit more savvy with your choice of current account, saving account and credit card.
“Take the time to clean up your finances and you could have a prosperous 2012.”
Follow our top money-saving tips and the typical consumer could save almost £800 over the next 12 months.
Switch your current account and get £100 cashback
First Direct will give you £100 if you switch to its current account.
The bank’s Easyswitch team is also on hand to make sure your switch goes smoothly by dealing with your standing orders and direct debits.
First Direct also provides a satisfaction guarantee and will give you another £100 if you are not happy with its service after 12 months.
Total savings so far: £100
Switch to a 0% balance transfer credit card and save £508
If you have a credit card balance of £2,000 accruing interest at 17.9 per cent a year, you could save £508.23* in interest charges over 22 months by switching to a 0 per cent balance transfer card.
The market-leading Barclaycard Platinum card offers up to 22 months 0 per cent interest on balance transfers.
Total savings so far: £608.23
Earn more on your instant access savings with the right account
The average person in the UK has readily accessible savings of around £1,501 according to ING Direct.
This amount, with the average annual interest rate on savings currently standing at just 1.23 per cent**, would earn £18.46 in 12 months.
But Griffiths says: “Confused.com’s best rate instant access savings account, Nationwide MySave Online Plus, pays annual interest of 3.12 per cent.
“Switch your savings to this account and you would earn £46.83 in 12 months – that’s £28.37 more.
Total savings so far: £636.60
Earn £117 on your shopping with a cashback credit card
Earn five per cent cashback on all purchases for the first three months with the Capital One World Mastercard, and 0.5 per cent after.
If you spend around £150 per week – easily achieved after paying for food, fuel and bills – you would earn £90 for the first three months and £27 for the remaining nine months.
Griffiths says: “This gives you a total cashback of £117 in a year for doing the shopping you were going to do anyway.”
Total savings so far: £753.60
Figures correct at the time of publication.
*If you have a balance of £2,000 accruing interest at 17.9 per cent APR you could save £508.23 in interest charges over 22 months after paying the balance transfer fee of 3.5 per cent, assuming you pay off 3 per cent of your balance on time each month.
** Financial analysis site Aequos, December 2011
