British consumers are burying their heads in the sand by choosing not to sort out their finances in 2008 and instead choosing more seemingly exciting activities, according to a new study. Just under half will be scared to open their bills in the first few months of 2008 because they know they have failed to budget and stick to financial spending plans.

Nearly half of the respondents to a survey by the Financial Services Authority said they were more likely to embark on a strict eating regime to shed the pounds or book a holiday to an exotic location than try and rectify their money problems in the first few months of this year. Younger Britons are the most ostrich-like, with 24 per cent of those aged between 16 and 44 too scared to open their bills and bank statements.

The survey also showed that 58 per cent of people significantly underestimated how much they would spend at the end of 2007, with 23 per cent of them taking out loans or credit cards to foot the winter bills.

In order to help alleviate financial crises, consumers should consider taking out an online saving account, which will help them put money away for a rainy day, while also granting easy access to view how the savings are going. Once savings start to accrue, they can help to get rid of the money problems caused by overspending, or taking out extra finances needed to try and pay the bills or just stay afloat.

Although sorting out finances may not be the most exciting of activities, ensuring that you have taken control of your money situation could be the most important thing you do in 2008. Sorting out your budget will grant you the means to be able to do the things you've always wanted - whether joining a gym or going on a Caribbean cruise. The consequences of not managing your finances well could be devastating, however, and people should also ensure that they make their bill payments on time to avoid damaging their credit history or putting relationships and home life under significant strain.

There are a number of methods you can utilise to keep your finances under control, including boosting income by claiming any state benefits or tax credits you might be eligible for, saving regularly, shopping around for the best financial products for you and talking to financial experts should you get into debt.

Disclaimer:
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

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