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New year 'heralds tricky financial time'

With 2008 set to be a difficult year for the personal finance situations of many Britons, one price comparisons site has offered tips on how to minimise the burden.

People's Champion suggests that reviewing gas and electricity tariffs could reveal that more funds than necessary are being spent on powering the home.

It adds that savings can also be made elsewhere - for instance, both credit cards and motor insurance products could be uncompetitive.

Jim Spowart, spokesperson for the company, says: "There will be a lot of belt-tightening for people - but my message is don't despair - make sure you prepare.

"An extra bit of financial preparation and smarter thinking will help millions of people out of what could be a sticky situation."

Meanwhile, the British Bankers' Association has suggested that consumers might like to leave their credit cards at home if they fear they will be tempted to overspend in the coming months.

It added that bill payers should not ignore their obligations and would be best advised to pay monthly to spread the burden of such costs.
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