Research from credit-builder credit card, Vanquis reveals the average consumer wants to save more (27%), spend less (24%), pay off debts (15%) and make a budget plan (13%) this year, while one in three (33%) of those with existing debt say they want to start paying it off.
The research comes as an estimated 1.2 million adults will be feeling the January pinch and be running low on money today (January 20th), before many people have received their first paycheck of 2021.
Almost a quarter (23%) felt under pressure to spend more money than they’d like to at Christmas, overspending by £211 on average. Almost one in three (30%) have already maxed out all of their credit and buy now pay later customers will also begin to see charges hit their accounts following December spending.
However, the new year finds consumers focusing on turning over a new financial leaf, with over half (58%) of consumers making a financial resolution for the year ahead – increasing to 77% in 18-35 year-olds.
Looking ahead, half (50%) are likely to rely on some form of borrowing in January, rising to seven in ten (67%) of those with outstanding debts.
In order to cut costs consumers plan to spend less on their food shopping (15%), make use of budgeting/planning for the month (14%) and be more mindful of their utility usage (11%), all positive, proactive steps to reduce spending and take back financial control.
Thomas Allder, Customer Director, from Vanquis said “The New Year is a great time to reset and think about how you can improve your financial wellbeing in 2021. There are a number of positive, small steps you can make to your day-to-day finances to help you get off on the right foot this year and help build your credit score.”
“Budgeting earnings and planning outgoing costs in a tracker is a good place to start, then you will see an accurate picture of your finances. This means you can then manage paying bills on time, set realistic savings goals and consolidate debts to pay the lowest possible interest rate and set a timeline to pay it off.”
“Taking steps to boost your credit score this year will also give you access to a wider range of financial products. We offer responsible and reliable access to credit for people and help customers on their journey to improving their credit profile, financial wellbeing and ultimately putting them on a path to a better everyday life.”