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FSA/PN/136/2007
28 December 2007 

New figures published today by the Financial Services Authority (FSA) show that 48% of people are more likely to go on a diet or book a holiday than try and sort out their finances in January (13%); while just under a quarter (24%) of 16 to 44-year-olds are worried or scared about their bills arriving in the new year.

The survey also found that 58% of people either didn't know what Christmas was going to cost them, or if they did know, they overspent anyway, and almost a quarter (23%) used loans or credit cards to finance the festivities.

As people prepare to face the costs of the festive season the FSA is publishing a free Moneymadeclear guide to help them through. Just the facts about making your budget work for you provides impartial information about managing your money and what to do if you get into debt.

Chris Pond, FSA Director of Financial Capability, said:

"Sorting out your budget isn't the most interesting thing you will do after Christmas, but it could be the most important. The consequences of not managing your money properly can be devastating. If you don't make payments on time it can affect your credit history and at worst put your home and even relationships under pressure.

"We can't promise easy solutions, but our free impartial Moneymadeclear guide will help you work out how much money you have each month and what to do if you are facing debts or the prospect of debts."

The guide shows you how to plan your budget and provides tips for keeping it under control including:

• Use the FSA's budget planner or online Budget calculator to see what you have left after you've paid your bills.
• Boost your income by claiming any State benefits or tax credits you might be eligible for.
• Get into the savings habit to help you meet your financial goals.
• Shop around for financial products to get the best deal for you.
• If you are in debt – don't panic. You're not alone and expert help is available. Talk to the people you owe money to and free advice services, such as Citizens Advice Bureau, National Debtline or the Consumer Credit Counselling Service.

In the guide, consumers will also find impartial, jargon-free information and answers to frequently asked questions about comparison websites, debt consolidation and individual voluntary agreements (IVA).

The guide is available from www.moneymadeclear.fsa.gov.uk or by calling the FSA's Consumer Helpline on 0845 606 1234 – Monday to Friday from 8am to 6pm (call rates may vary).

Notes to editors

1. The survey was conducted by TNS with a nationally representative sample of 2,454 adults aged 16+ interviewed across the UK between 7 and 11 December 2007. View the survey results [PDF]

2. Visit www.moneymadeclear.fsa.gov.uk for interactive tools to help you get to grips with your money, for example, use our:

   • Budget calculator to work out whether you have enough money coming in to cover your spending;

   • Mortgage calculator to check what your repayments might be if interest rates change;

   • Debt test to help you work out whether you are likely to have problems with your borrowing over the next year or so; and

   • Compare products tables to compare the features and costs of savings accounts, mortgages or pensions.

3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

5. Regional tables are available on request.