Saving more is top of UK financial wish list for the New Year

Saving more and taking greater care of managing their finances are Britons' top two financial resolutions for the New Year, a survey by UK bank Bradford & Bingley has revealed.

Despite tills continuing to ring with the frantic purchases of last minute Christmas shoppers, prudency is the order of the New Year, with Britons planning on saving more (48%), managing their finances more carefully (40%) and spending less (38%). Reducing debt is the next most popular financial objective for 2008, with more than a quarter of Britons (26%) determined to claw themselves out of the red next year.

The survey, which was carried out by GfK NOP on behalf of Bradford & Bingley, found that those aged between 25 and 34 are most set on saving more next year, with nearly two thirds (62%) of this age group citing this as one of their New Year resolutions. In contrast, the survey found that just 27% of those aged 65 or older are planning to save more next year.

When it comes to broader financial concerns, interest rates top the list, with 37% of Britons wary of the impact of any increase in interest rates.

Unease over interest rates is closely followed by misgivings about having enough savings/emergency funds (36%), while the biggest concern for some is their mortgage rate rising (23%).

The survey also found that recent reports of a slowing housing market, combined with the interest rate rises of the past 16 months and the 'credit crunch', appear to have had an impact on consumer confidence levels, with 20% of people citing falling house prices as a concern going into next year.

Paul Whitlock, head of savings at Bradford & Bingley, comments: "The carefree spending of recent years looks likely to become a thing of the past for many Britons, with nearly half intending to save more in 2008 and 38% looking to spend less. With unsecured debt at record levels and the credit crunch likely to bite well into next year, this battening down of the hatches is a prudent move as we move into 2008."