By Ann Francis

Cambrian Credit Union

New Year new financial you? If you’ve resolved to take control of your finances this year, Ann Francis has some timely advice.

January is traditionally a time when the fun of Christmas gives way to that feeling of financial over-indulgence.

This year, more than most, many of us are looking to control spending and it really will pay off to take some time out to review your finances. Here are a few pointers to help you resolve to get to grips with our finances in 2023.

1.Take stock of debt and credit commitments: The first step is to take a deep breath and go through your debts to work out what you owe and how you will repay it. If you have loaded up your credit card and can’t pay it back quickly, it may be worth looking to swap the balance to an interest-free credit card. Go through your bank statements and check all of your commitments, including the buy now pay later schemes like Klarna and Clearpay that can really add up.

2. Check out comparison sites for a cheaper deal: Go through your regular bills for your mobile phone, broadband etc and shop around for a cheaper provider on comparison websites. January is also a good time to go through your subscriptions like gym membership or TV packages and consider whether you really need them.

3. Plan ahead to shop smart: According to Which, there was an almost 32% difference in the cost of an average shop at the cheapest supermarket (Aldi) and most expensive (Waitrose) in 2022. With food prices rising, the weekly shop is one area of expenditure that needs careful management. Avoid overspending by working out cost-effective meal plans, to avoid food waste, sticking to a list and keeping an eye on the supermarket cost comparison tables.

4. Count the cost of credit: If you are looking to take out credit or considering a consolidation loan, make sure you check the interest rate and the full amount repaid as well as monthly or weekly repayments. As a credit union, Cambrian’s advertised loan interest rate is what you get if you are accepted, but this isn’t true of most loan providers. Watch out for the term ‘representative APR’ on credit or loan marketing materials as this may only apply to 51 percent of people who actually take out the loan, so make sure to compare the rate you are offered after applying for the loan as well as the one in an advert.

5. Help when you need it: Credit isn’t a bad thing, it helps us buy homes, cars, or pay for a new washing machine, but unmanageable debt is a problem, and if you feel you’re in that situation, it’s important to seek advice and face your financial concerns head on. If you need help, be careful of the debt advisers that pop up on social media ads, which can be expensive, and get free, expert support from Step Change or Citizen’s Advice.

6. Save for a rainy day: If you able to cut your costs, try to put some of that saving aside. Just £10 per week would give you more than £500 by this time next year, which gives you a bit of a financial cushion when you need it.

Ann Francis is CEO of Cambrian Savings and Loans, a financial co-operative that offers ethical savings and loans. With no external shareholders, profits are ploughed back into providing services to members. For further details visit www.cambriancu.com.