Simple ways to SAVE!

By setting aside a day for financial management you can shop around for the best deals available on your mortgage, credit cards, loans, insurance even your household utilities. And thanks to the internet, it's easier than ever.

Top 10 financial resolutions to save ££'s:

1.Change credit cards Because interest rates have risen recently most cards have taken the opportunity of putting up their rates, but not all by the same amount. Some cards charge interest of nearly 20% and many other popular pieces of plastic hit customers for more than double the base rate. If you have a reasonable credit rating there are hundreds of low-interest deals on offer, so it can pay to review your credit arrangements at the end of the year.

Why pay nearly 20% interest when you need only pay 0% for six months as an introductory offer for a transfer of balance on a range of cards? You may also find that you have a period with no interest on any new purchases. You should also consider, for the longer term, which cards have the lowest APR.

But remember, when it comes to debt, prevention is better than cure. Make sure you know how much you can afford to pay back each month and borrow no more than that.

Don't forget if you change your credit card - to inform those companies that you make regular payments to.

2. Consolidate debts with a cheap loan If you have an overdraft, credit card bills or other debts you might find that your best option is to find a low-interest loan and use it to pay off your other debts. This is known as debt consolidation. Many loans have much lower rates than overdrafts or cards, with the exception of 0% interest credit cards. It's vital that you shop around as there can be a big difference in rates offered. However, you might find that if you have a poor credit rating you will be asked to pay a higher interest rate.

But beware: some low rates are only offered for short periods before reverting to a high rate, so check the APR (annual percentage rate) - usually the one with the lowest APR will be the cheapest loan. With most loans, you pay less interest as the life of the loan progresses. Watch out for 'flat-rate' APRs, which charge you the same amount of interest for the life of the loan, meaning you pay back far more. Consumer credit regulations require the total charge for credit in a credit agreement to be stated as an APR - check the small print. And of course, don't borrow more than you can afford to pay back - if you use your home as security for a loan and don't keep up with the repayments, you could lose it.

3. Think about changing bank accounts You may not be getting the best value out of your bank. Does your bank pay interest on your current account balance? Does it meet your overdraft requirements? Remember, if you have an overdraft do not go over your overdraft limit as you will end up paying a 'penalty' rate of interest, Following regulatory changes moving banks is now quicker and less hassle than it once was, with all your direct debits and standing orders being changed without hassle. All you need to do is get in touch with your new bank and agree with them the date upon which you want to move and they do the rest for you. Using your authorisation they will contact your old bank and arrange for the transfer of your balance. They will also contact each of your direct debit companies and give them the details of the new account and instruct them to take the debits from there. The direct debit companies themselves will receive confirmation of this from your bank for security purposes, tie the two up and - hey presto - you only have to deal with your new bank. It should be as simple as that.

4. Take a look at your mortgage With recent rises in interest rates it could pay for you to switch your mortgage. Those borrowers who are still on an annual mortgage review (this only applies to a small proportion of home loan holders) might be in for a shock when the new mortgage payment is fixed - it might be considerably more. However, you must ensure that the savings you make will outweigh any extra costs and penalties you might have to pay for moving. You may have to pay an application fee for a special loan (usually around £250-300), a valuation fee, and lawyers' fees too, These costs could easily total £700-800 and wipe out any savings.

5. Move your savings to a higher paying account Don't let your savings wither away in some building society or bank account that pays a measly 0.01% interest. Do some research and make sure you are getting the best deal on the market.

6. Pay less for your insurance It's easy to stay with the same insurer, renewing your policy year in, year out without a second thought. You could probably save money by looking around. When you have to renew your car or your house insurance, get a range of quotes to find out which is the cheapest. You can then either change your policy or go to your existing insurer and ask them to match the lowest quote you have found. If you buy travel insurance, dont just settle for the policy offered by the travel agent, as you may be parting unnecessarily with cash that would be better spent on ice cream or ski passes. Look for insurance quotes online to see how competitive your current deal is.

7. Dont leave it to the last minute to get an Independent Savings Account (ISA) January marks the start of 'ISA season', An ISA is a tax-free savings wrapper (to give it its technical name) that allows you to save or invest cash without paying tax on the interest or profits. If you have some money to save or invest an ISA can make sense.

8. Keep the taxman happy If you have been sent a self-assessment tax form, you must complete it and return it to the Inland Revenue (whether online or by post) by the end of January. If you miss the deadline you will have to stump up a penalty of £100. There is a second fixed penalty of another £100 if your tax return is still outstanding six months later.

You should also resolve to keep all your financial documents in good order. The taxman can charge a penalty of up to £3000 for each failure to maintain or retain adequate records to back up a return (or claim).

9. Check out your pension situation To ensure that you are not left in poverty in your old age you should ensure that you have got adequate pension arrangements. Firstly, you can find out the value of your state pension arrangements. This will give you a clear picture of how big a gap there is between what the State provides and what you feel will give you an appropriate standard of living. For an individual forecast complete form BR19 and send itto the Retirement Pension Forecast and Advice Service. To get the form call 0845 731 3233.

10, Switch energy suppliers You may be paying around £100 more than you need to if you arent buying your gas and electricity from the cheapest suppliers. Shop around for the best deals.

If you follow this plan you should certainly have a wealthier and wiser new year.

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