Britons plan to save next year, finds Bradford & Bingley

Almost two in three Britons (61 per cent) are planning to save more in 2005, Bradford & Bingley has found.

11:20 15 December 2004

Almost two in three Britons (61 per cent) are planning to save more in 2005, Bradford & Bingley has found.

The theme of fiscal prudence continues with one in two people (48 per cent) planning to spend less and one in three looking to reduce their debts.

But, as with many New Year's resolutions, Bradford & Bingley points out that these intentions might well not be turned into practice.

When the survey was first launched ten years ago, as with this year, 47 per cent said they would spend less and 62 per cent said they meant to put more away for the future.

But last year borrowing jumped 15 per cent to 140 per cent of the average household income.

"Realistically, not all resolutions will be kept but it's important that consumers make a conscious effort to try and stick to the promises they make to themselves, especially when it comes to the health of their finances," said Michael Senior, head of personal lending for Bradford & Bingley.

"We've seen ten years of good intentions, but now really is the time for people to keep to their financial resolutions. Advice and help is at hand, but consumers must be committed to asking for it.

"Those who are serious about making inroads into their outstanding debt should consider wrapping up their debts into one personal loan to consolidate all unsecured borrowing, rather than paying them off individually.

"This would almost certainly save them money as the interest rate will be significantly less than that of most store and credit cards. In order to stick to their New Year's resolutions, though, it is vital that once they've consolidated their debt they don't re-spend it in the January sales."

Bradford & Bingley found a third of adults want to reduce their debt in 2005 by consolidating existing spending on credit cards and store cards into more manageable payments.

One in six people also wants to find better rates for their credit cards.