January is never a kind month on the bank balance, but do not despair, says Vicky Shaw – make some new year money resolutions instead

THIS time of year, after too many Christmas indulgences and too much time before the next pay cheque, many people are desperate to get their finances back on track.

It can seem overwhelming, but some simple changes can help you make sure that this is the year your money goes that little bit further.

Switch your current account

IF you are happy with your current account provider, that is great. If not, give them the elbow and make a fresh start.

New rules have made it simpler than ever to ditch your old bank or building society.

The length of time it takes to switch has been cut from up to 30 working days to only seven, and all outgoing and incoming payments are now automatically swapped over to your new bank account.

A new switching guarantee also means you will be refunded any charges incurred as a result of mistakes in the process.

Before jumping to a new provider, think about how you use your current account to work out which deal will offer you the best value. If you often dip into your overdraft, you will want to keep charges to a minimum, but if you are often in credit, you may want to make the most of your money by choosing an account which pays in-credit interest.

Current account providers are also increasingly offering cashback deals and you may want to consider if this will work well with you.

Transfer credit card debt to make borrowing cheaper

HELEN SAXON, money expert at MoneySavingExpert.com, explains: “If you have existing debts on credit cards, a balance transfer is where you get a new card that repays the debts on other cards for you, so you now owe the money at hopefully a cheaper rate. In turn, this means you are debtfree quicker.

“How much you can transfer will depend on the credit limit you are given. If it is not high enough, move what you can – it will still cut some of your costs.

“Then if you need to consider applying for another balance- transfer deal to shift the remaining expensive debt.

“But beware, the more applications you make, the greater the impact on your credit score.”

You will need to go through the hurdle of passing credit checks to get your hands on a new card, but a balance-transfer eligibility checker at moneysavingexpert.com/ BTeligibility will tell you your odds of getting each card.

This will not affect your credit score because, unlike applying for a card, this process leaves no credit search behind that lenders can see.

Switch to a cheaper energy deal

A STRING of major providers have announced rises in recent months, so if you have not done so already, scour around to compare deals. It may well be worth considering locking into a cheap fixed tariff to protect against any future increases.

Have an early spring clean

ACCORDING to research from AA Home Membership, nine out of ten of us have gadgets lurking at home that we hardly use, with chocolate fountains and fondue sets among the worst offenders.

Now could be the time to put unwanted items up for sale, perhaps on a website such as eBay.

Take advantage of discount vouchers and cashback

THIS is another great way to stretch out your January budget.

A recent study for American Express by the Centre for Economics and Business Research looked into the impact of multi-buy and price discounts, store card reward points, vouchers, coupons and credit and charge card rewards such as cash back, and restaurant deals. It found each shopper saves about £742 a year.

Reclaim mis-sold PPI

THE first step if you believe you were mis-sold PPI (payment protection insurance) is to write to the firm you hold responsible.

If you are not happy with the outcome, you can ask the Financial Ombudsman Service to step in. Visit financial ombudsman.org.uk/contact/ PPI.html