One in three plan to reduce debts in 2005, finds Bradford & Bingley

More than one person in three plan to reduce their debt in 2005, Bradford & Bingley has revealed.

12:55 11 January 2005

More than one person in three plan to reduce their debt in 2005, Bradford & Bingley has revealed.

The bank adds that one in two people (48 per cent) also mean to spend less in the new year.

"It's encouraging that many borrowers are starting the new year with such good intentions and are working towards a healthier bank balance," said Michael Senior, head of personal lending for Bradford & Bingley.

The bank has offered consumers a five-point plan to help turn their new year's resolutions into reality.

Bradford & Bingley advises consumers:
- to consolidate store cards, credit cards and overdrafts into one personal loan;
- to keep an eye on when any introductory zero per cent credit card deals end;
- to save surplus money made by consolidating or paying off debts to provide for future needs;
- find out if it is cheaper to remortgage to a better deal;
- and to consult with a financial advisor to help budget and plan finances for the year ahead.

Mr Senior concluded: "By focusing on your finances in the New Year and making simple changes where you can - wrapping up existing debts into one personal loan, switching to a more competitive credit card or remortgaging - you will be able reduce your debts and release extra cash."