January - January Is 'Right Time' For People To Organise Finances

Now is the time when people should be looking to get to grips with their finances, an industry expert has declared.

According to Donald Macleod, head of cards at "Sainsbury's Bank, the new year provides the ideal opportunity for consumers to sort out their money management and clear debts which they accrued over the festive period. Pointing to recent research from the firm, he stated that about two-thirds of Britons expect to have cleared off their seasonal debt by the end of this month, while the majority of people will be "quite comfortable" in getting back into the black by the time next Christmas rolls around. However, Mr Macleod reported that the estimated one out of 100 who believe it will take them more than a year to get their finances back on track could face more difficulties.

And although this is a minority proportion, as 438,000 people think that a period of at least 12 months is what they need to get their spending sorted, a significant number of borrowers may be on track to experience financial problems as 2008 progresses. Research from the financial services firm showed that 25.63 million look to be debt-free by the end of January. An estimated 6.32 million are aiming to achieve such status within three months' time, with 2.86 million wanting to get at this stage in six months. However, 4.84 million report that they do not know how long getting out of the red will take them.

For those people who find that they are experiencing particular trouble in getting to grips with their money management, applying for a UK consolidation loan could prove to be of assistance.

Mr Macleod said: "Now is the time of year to sit down and look at your finances. You've got all your Christmas spend out of the way, so you know what you've spent - your credit card bill will be coming in now. Appraise where you are and see if there's a better way of handling that debt; look at loans, look at restructuring, the zero per cent interest rates out there."

The Sainsbury's representative stated that although people should enjoy the festive period, it is important people make it "a new year's resolution to say what your ingoings and outgoings are and sort your finances out". Mr Macleod went on to report that those taking steps to get to grips with their finances during this time of year will find that "there are a lot of great deals out at this point and you can get a deal that really suits your circumstances".

For those worried that becoming debt-free will take them longer than expected a consolidation loan might be of assistance. Applying for such a loan could allow consumers to pay off a number of demands on their spending, such as utility bills and credit cards, quickly and more effectively. And although it presents another form of borrowing, those taking out a cheap consolidation loan may find that they have more disposable income at the end of each month. Such a UK loan could be helpful for a significant number of people, as a recent moneysupermarket study indicated that 5.5 million Britons were unable to meet a demand for payment during the last 12 months.