New Year, New You, Financially At Least...

Do not let excessive spending and debt worries ruin your New Year

. If you feel that in the merriment of the festive season, you have lost control over your money then tackle it head on. The aim here is to give a few tips on how to shed those extra pounds of credit card debts as we enter 2011.

New research conducted by the insolvency trade body R3 estimates that 6 million people borrowed money to pay for Christmas this year. Of those surveyed, 25% stated it will take at least two months to pay off Christmas debts and over a million people stated it will take six months to repay the debts, and many may join the tens of thousands seeking free debt advice from money advice charities each month.

Shedding those extra debts can be just as hard as shedding those extra mince pies that you wish you never had! Although the most important step is to address your financial worries head on; burying your head in the sand will achieve nothing but sleepless nights. Here are a few easy tips on how to begin the debt management process.

Transfer your balance: If you have overspent on your credit card over Christmas, do not panic. You can save on interest costs with a simple 0% balance transfer. Many credit card providers offer interest free credit cards for a year, and some for up to 16 months so it is worth shopping around for the right transfer offer for you.

Communicate with Creditors: While this is unlikely to be top of your "Fun Things to do in 2011" list, it is advisable. If you have a lot of different debts and you know you will struggle to keep up with the repayments, talk to your creditors and explain your situation. Most of the time, creditors will agree a smaller, more manageable repayment scheme with you and/or reduce your interest rate, after all, it is in their interest too for you not to default on your debt.

Work overtime: No matter how much you dislike your job, it may be worth offering to do some additional overtime to boost your wage slightly. Or if your evenings or weekends are free, then perhaps you could take on a part time job. This will not only give you an added income but it will give you some extra experience and perhaps open your eyes to a potential career that you love.

Walk, do not drive: How many of us started the New Year with the resolution to diet and get fit? I know I did! Get fit by walking to the local shops rather than driving, not only will this help your fitness but it will save you more than you would expect on petrol. As VAT prices have risen a huge 2.5% this year, petrol prices have sky rocketed, so save those pennies by choosing to walk.

Generate some cash: Having a clear-out is a great way to generate some cash quickly. Have a good look around your house and garage for items you no longer want or use. Then either sell them at a carboot sale or place them on eBay. Of course, this may also be a great way of getting rid of those wacky and unusual Christmas presents given to you by your relations!

Cool it and wrap up: Being energy efficient is greatly underestimated in my opinion. Small changes such as turning off unused lights, turning the heating down a few notches and washing up the pots by hand rather than using the dishwasher can all contribute to a monthly or quarterly saving on your utility bills. Utility providers, as always, have increased their charges on heating as the weather turns colder, so it has never been more important to be energy efficient.

Cool it and wrap up: Research conducted last year concluded that a homeowner could save a mighty 10% on their heating bills alone of they made a few small changes to their home to encourage heat insulation. For example, purchasing a few cheap draft excludors for your doors and simply drawing the curtains when the heating is on, can all prevent heat (and money!) being wasted.

by: Emma O'Garrity

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