Britons ‘determined to repay debts’

Repaying debts is the number one financial priority for people in the UK in 2013.

Research by JP Morgan Asset Management discovered 29 per cent of respondents feel this is the most important aspect of what they hope to achieve in the coming 12 months. This is followed closely by regular saving (28 per cent), reviewing financial situations (24 per cent) and saving into an ISA (23 per cent).

It seems consumers are determined to turn around their financial situation, as they seek to avoid falling into debt. On top of this, two-fifths of those questioned said they intend to tackle a new money goal in 2013, while seven per cent are going to make their first ever investment.

Keith Evins, head of UK Funds Marketing at JP Morgan Asset Management, said: "Addressing your finances by tackling something for the first time can lift a real weight from your shoulders – especially as we emerge from an expensive festive period with the goal of being more financially savvy.

"I urge Brits to consider both short and long-term goals: repaying debts is a great place to start in the short term and offers a clean slate to then start thinking about the broader financial future."

It comes after the British Bankers' Association (BAA) revealed consumers are going to be cautious with their spending in 2013, as they look to pay down debt and improve their savings. With figures showing that spending on credit cards rose to £7.3 billion in November – which is higher than the monthly average over the past 12 months – it is clear individuals are determined to cut their cloth accordingly.

David Dooks, statistics director at the BBA, observed households appear to be determined repay as much as they are borrowing, while deposits are growing by six per cent annually.

If consumers do not take a sensible approach to their finances, then they will struggle to bring their situation under control.

By James Francis