2010 financial survival guide

With the new year many people may want to make it their resolution to tighten up their financial outlook.

If you are in debt, then you may want to make 2010 the year that you start to take back control.

This need not be a experience which makes your life more difficult and you may not even need to make cutbacks to the way you live. Many people could potentially benefit from looking at some of the things they need year-on-year and shopping around for the best deal for this year.

For the average consumer this could mean finding the credit card deal that is right for them, paying that little bit extra on their mortgage while interest rates remain low or switching their insurance.

Find the best deals

This could be applied to almost anything that you purchase. For basics such as grocery shopping you may want to take a look at Mysupermarket.com which allows shoppers to compare prices on a huge range of products and potentially slash their weekly food bill.

But instantly noticeable savings can also be made in one swift move by savvy consumers. Insurance deals can vary greatly and be it home insurance, car insurance, pet insurance or holiday insurance, money could be saved on each.

Of course people should ensure that they find the deal that is right for them but if they can find the same offer at a cheaper price then it could be to their benefit.

If you are considering switching your insurance then first you may want to take a look at price comparison websites to see what is available. You could also save money by talking to your current provider and seeing if they can match or better a deal that another company is providing. This may prove especially true with mobile phone contracts as networks are keen to hold on to your business.

Broadband deals could also save you money and an extensive list of options can be compared at broadbandchoices.co.uk.

Could changing your credit card provider save you money?

For those of you who owe money on a credit card one option to consider may be to look at the interest rate you are currently paying.

You could be wasting hundreds of pounds a year in interest if you are paying your provider's APR.

As an incentive to encourage you to switch providers, many card companies offer 0% credit card rates for balance transfers or purchases for a period of time.

By switching to a 0% balance transfer card consumers are able to benefit from paying nothing on debt for a year or more.

If they then choose to pay off as much as they can every month, every penny paid during the interest-free period will go towards paying off the debt.

If you are in debt then using your money for your own benefit could be a more preferable option than paying money to your credit card provider.

One card worth that may be worth considering is the Halifax All in One card which is interest-free on both purchases and balance transfers for nine months.

The interest-saving offers on this card include 0% for the first nine months on purchases.

In addition this the card offers the same rate for the first nine months on balance transfers made in the first 90 days - although a 3% fee applies - meaning that transferring existing amounts owed could save even more money.

Overpay your mortgage while interest rates low

An option that some people may want to consider is overpaying their mortgage if they can afford to do so. This can potentially allow for a mortgage to be repaid more quickly.

By keeping monthly mortgage repayments as they are even though the base interest rate has plummeted repayments could become lower each month.

Overpaying works because when more is paid the overall debt is reduced and this means that next month less interest is owed.

The head of mortgages at HSBC recently said that people "overpaying their mortgage could reduce its term by years and save them thousands of pounds in interest".