Making New Year's Resolutions about Paying off Debts? You are not Alone.

06 Jan 2010 Tell a Friend

Getting fitter, spending more time with our families, taking up some hobbies...all of these are likely to feature on our New Year's resolution list at the start of 2010.  However, the most popular resolutions appear to be related to our financial situations, as our recent survey shows.

'Managing my money better' came top of the list, chosen by 23% of respondents, followed by 'Paying off my debts', chosen by 20%.  19% of people stated that their main aim is 'Saving some money each month'.  In total, money-related resolutions swept the board with a surprising 80% of the vote, showing that the current economic climate has really brought finances to the forefront of our minds.

In comparison, 'Getting fitter/getting in shape' was chosen by just 12% of those surveyed as the main resolution for 2010.  16% of people selected work-based resolutions; 10% planning to find a better-paid job, and the remainder wishing to find a role that was more satisfying than their current one.  The effects of the recession on the job market were not overly apparent, with only 2% of respondents resolving to 'Get back into work'.

Two main conclusions can be drawn from these figures, the first being that personal finance is now featuring very highly in the public consciousness, and the second that people seem keen to manage their finances more effectively.

According to recent data collected by Datamonitor (June, 2009), 45% of UK consumers are more likely to shop around for better deals on their finances than they were before the downturn, which is one very positive outcome.

However, the same survey showed that 7% of UK consumers admit to avoiding opening their bank statements, a pattern of behaviour that can lead to anxiety and unnecessary charges.  This combined with the finding that 49% of UK consumers do not read the financial news, either online or in the papers, shows that we still have a way to go towards better financial management.

The key to managing money is to be organised, keeping an eye on your balance (however depressing this may be at first), and making sure that bills and other commitments are the first things to leave your account when money comes in.  

This will limit the possibilities of missed payments, bounced cheques and failed direct debits, meaning that your credit score will improve and you will be less likely to incur bank charges.  We may not be able to keep all of our resolutions, but good money management is achievable with only a little effort all through the year.