Figures published today by the UK regulator, the Financial Services Authority (FSA), show that 48% of people are more likely to go on a diet or book a holiday than try to sort out their finances in January (13%); while just under a quarter (24%) of 16 to 44-year-olds are worried or scared about their bills arriving in the new year.
The survey also found that 58% of people either didn’t know what Christmas was going to cost them, or if they did know, they overspent anyway, and almost a quarter (23%) used loans or credit cards to finance the festivities.
As people prepare to face the costs of the festive season, the FSA is publishing a free “Moneymadeclear” guide. Its goal is to help indebted consumers manage the problem.
“Sorting out your budget isn’t the most interesting thing you will do after Christmas, but it could be the most important,” says Chris Pond, FSA Director of Financial Capability. “The consequences of not managing your money properly can be devastating. If you don’t make payments on time it can affect your credit history and at worst put your home and even relationships under pressure. We can’t promise easy solutions, but our free impartial Moneymadeclear guide will help you work out how much money you have each month and what to do if you are facing debts or the prospect of debts.”
The guide shows consumers how to plan a budget including the use of the FSA’s budget planner or online budget calculator to see what is left after bills are paid, and boosting income by claiming any State benefits or tax credits consumers are eligible for.
The guide is available from www.moneymadeclear.fsa.gov.uk or by calling the FSA’s Consumer Helpline on 0845 606 1234 – Monday to Friday from 8am to 6pm.