Search: Sorting out your finances
- Check your credit hasn't been tampered with
- Get a better mortgage deal
- Cut your household bills
The New Year isn't just about giving up chocolate, alcohol and smoking - it's also the time for some positive changes. In the current economic climate, top of your list should be learning to look after your finances.
Plan properly and it won't be as hard as you think. Here are some dates for your diary.
January: Deal with the urgent stuff first
If you're self-assessed for tax, you must file your tax return and pay any taxes you owe by 31 January or you'll be fined. Go to hmrc.gov.uk and the site will automatically calculate what you owe or are owed when you file online.
Make a note to yourself if you're likely to owe the taxman less than £2,000 - you can have this collected via your PAYE code if you file by 30 December.
February: Take control
Take a look at the bigger picture of your finances and get ready to take control of your money. Check bank and card statements, go through your utility bills and check your credit report – online services such as CreditExpert offer a free trial. Your credit report shows what you've borrowed, how much you owe each lender and how well you're managing your repayments.
There's also a useful list of all your lenders and their contact details if you've got unused accounts that need closing or spot anything you disagree with.
March: Deal with debt
If you've got debts to clear, prioritise them so you get rid of the most expensive ones first. It’s also worth trying to identify a cheaper loan or taking out a credit card that offers a zero per cent balance transfer or interest-free spending for a few months, to give yourself some breathing space.
You are more likely to qualify if your credit history is good, so go back to your credit report before you apply and make sure it's up to date and accurately reflects your circumstances.
April: Start to save
If you've got spare cash and haven't used up your tax-free ISA allowance for 2008/9, you've only got until 5 April to take advantage. But before you do, get out your calculator to see whether you'd be better off paying off some of what you owe, if there are no penalties for early repayment.
May: Think ahead
If you've got a mortgage, the chances are that you viewed and bought your house during the summer/early autumn sales peak, so now's the time to look for a replacement for your fixed rate mortgage if it runs out this year.
Ideally, give yourself three months to find a new deal. Little things can make a difference to your credit rating – even registering to vote at your current address can help. If you've got a good reason for any repayment problems in the past, contact the credit reference agency that holds your credit report - Experian is the UK's largest - and they can add a note of explanation that lenders will see.
For example, you may have missed a few payments because you were ill. Be prepared to provide proof.
June: Hit the sales
The summer sales start this month, so take advantage of the bargains. If your family needs new summer clothes, you can pick them up for less - and you can also start filling your present drawer for Christmas, instead of panicking and paying full price nearer the time.
Don't borrow more than you can comfortably repay if you're contemplating putting everything on your credit card, or the interest could eat into what you save.
July: We're all going on a summer holiday
Organise your holiday money in advance – buying foreign currency at the airport or changing cash at the hotel can be expensive. Payment cards can offer the best deals but do your research carefully and make sure you're not over-stretched already, or you may be turned down when you ask for a new one.
August: Amuse the kids for free
Outings to amusement parks, trips to the cinema, ice-creams and treats are expensive, so cut your costs without depriving the kids of a good time. Look out for money off and two-for-one vouchers in the papers and online, buy snacks from the supermarket and bring them with you and have some good, old-fashioned fun for free.
Take them for a walk in the country, enjoy a home-made picnic, visit friends in other parts of the country – and send them to stay with the grandparents, so you get some time off too.
September: Christmas is coming
It may sounds crazy but you need to start planning for Christmas, or you'll end up in a last-minute panic, buying expensive food, drink and presents just to get things done.
Fill the freezer and drinks cupboard with special offers, snap up presents when you see them and put a little money aside every week towards the festive season, so you don't have to put it all on your credit card or overdraft - a survey by CreditExpert found that more than a quarter of us resorted to this in 2008.
October: Protect your identity
National Identity Fraud Prevention Week takes place this month but don't let that stop you protecting your ID all year round. Tips from stop-idfraud.co.uk include never revealing personal information to people claiming to be from an official organisation, such as a bank or the police, without double-checking.
They also advise shredding all documents containing personal or financial information before throwing them out and keeping your credit or debit card in sight when paying. Last but not least, check your credit report regularly, as it will show you if someone is trying to borrow in your name. PS: if you want to file a paper tax return, it has to be in by the 31st.
November: Check your utility bills
The clocks have gone back, the nights have drawn in and we're heading into the coldest months of the year. All energy suppliers have put up their prices over the last year but there are still differences between them and you could save a tidy sum by changing supplier.
Visit consumerfocus.org.uk for a list of energy price comparison sites. Setting up direct debits is likely to cut your bills and don't assume that dual-fuel options will always be cheapest - sometimes they're not.
December: Go house-hunting
The bottom of the housing market might well have been hit by now but December is always an unpopular month for house hunters, with Christmas, bad weather and holidaying solicitors combining to slow down sales.
If you've been saving and waiting, it's time to forget the wrapping and the turkey and get looking. By early 2010, you could be in your new home – and in good financial shape.
To view your personal credit information that lenders are currently basing their credit decisions on, apply now for a free online credit report. Click here for a free 30-day trial and a free copy of your Experian credit report
