According to a survey by the independent financial advisers' trade body, Unbiased.co.uk, despite our money problems, 38% of consumers are not doing anything to improve their situation.
Here, we take a look at the top 10 most common financial woes and how you can sort them...
1. Shift your savings
With interest rates remaining slumped at 0.5% since March 2009 it's a torrid time for savers.
However, many are suffering more than they need because their money is sitting in savings accounts that are no longer paying a competitive rate of interest.
To ensure you earn as much interest as possible, keep an eye out for bonuses that disappear after the first year and make sure you move your cash to another account when the rate falls.
The best easy access accounts are paying around 3%. Nationwide's MySave Online Plus account has the highest rate at 3.12%. This includes a 12-month bonus of 1.58%. However, you must pay in at least £1,000 when you open an account and only one penalty-free withdrawal is permitted each year.
If you would prefer more flexibility, Santander's eSaver Issue 4 pays a marginally lower rate, 3.10%, although you can make unlimited penalty-free withdrawals and the minimum deposit is just £1.
The introductory bonus is bigger than that of the Nationwide account at 2.60% so you should definitely look to move your money again after the first year.
If you have money you can afford to lock away, you can earn a higher rate of interest with a fixed rate bond. The AA's five-year Fixed Rate Savings account is paying 4.60% while BM's five-year Fixed Rate Bond has a rate of 4.50%.
This type of account only suits those with a lump sum to invest as you can only make one deposit at the time the account is opened.
2. Address your pension
How to fund retirement also features high up on the nation's list of money worries, so if you don't already have a pension, take action now.
Patrick Connolly at independent financial adviser AWD Chase de Vere, says that if you don't have access to a scheme run by your employer, a good place to start is with a stakeholder pension: "Minimum contributions start at a manageable £20 each month and contributions can be varied."
If you already have a pension, consider using some of your savings to boost the pot, especially while interest rates on savings are so poor.
3. Transfer expensive credit card debt
With the average balance on a credit card currently at £2,221, according to research by MoneySupermarket, and rates as high as 19.9% APR, debt on plastic is another big headache for British consumers.
Transfer languishing credit card balances onto a different card that offers a 0% interest for a fixed period.
Top of the tables is Barclaycard Platinum which is currently offering new customers a 22-month 0% period on balance transfers as long as you make the transfer within 60 days of opening the card.
You will be charged a transfer fee of 2.9% although if you apply for the card directly from Barclaycard and transfer more than £3,000 you'll receive a £40 refund.
Use MoneySupermarket's Smart Search tool to see which cards you might be accepted for prior to applying, as this will not register on your credit file. Remember that no credit card company will accept balance transfers from one of their own cards.
4. Switch your mortgage
Your mortgage is likely to be your biggest monthly bill, so ensure you are paying the lowest possible rate.
With plans for another round of quantitative easing, the base rate is likely to stay low for some time, which puts cheap tracker mortgages in a favourable light, says David Hollingworth at broker, London & Country.
"However that has to be countered by an individual's preferences and ability to deal with rising mortgage payments if the current forecasts do not pan out as expected," he says.
"In this case, fixed rates also remain very competitive and allow borrowers to budget by insulating them against future rate rises."
For information on the best mortgages currently available, visit our mortgage channel.
5. Insure your income
The latest official figures show that unemployment has increased by 114,000 in the three months to August, bringing the number of jobless to 2.57 million.
This is beyond the 2.5 million peak seen earlier this year and marks the worst levels of unemployment since the early 1990s. But rather than lose sleep about the prospect of losing your job, get adequate insurance in place.
Income Protection (IP) insurance for example, will provide you with a regular tax-free income in event you lose your job, have an accident or become too sick to work.
IP continues paying - up to 60% of your salary - until you can resume the same kind of work, or until the policy ends.
6. Reduce your energy bills before the cold kicks in
Five of the 'big six' energy suppliers; Scottish Power, Scottish and Southern Energy, British Gas, Eon and npower, have already introduced double-digit gas and electricity price hikes -and EDF Energy will follow suit from November.
The result is £155.75 added to the average cost of a typical household's energy bill each year. However, you can combat price increases this side of winter by shopping around for the cheapest supplier and tariff.
If you want know exactly what your bills will cost during winter and beyond, consider taking a fixed rate tariff before the deals become more expensive. Simply switching to online billing and direct debit payments can save a further £200 each year.
Use our energy calculator to find the best deal for you and start saving now.
7. Fight back against inflation
The Consumer Prices Index (CPI) measure of inflation currently stands at a 4.5% - more than double the government's 2% target. But while there is nothing shoppers can do about the rising cost of living, they have a raft of online discounts at their fingertips.
MoneySupermarket's voucher channel allows shoppers to search for voucher codes and discounts by typing in a store or item.
You can ensure your savings stay ahead of inflation at all times by choosing an inflation-linked bond, The Post Office for example, pays 1% above RPI (Retail Price Index) for five years in return for a minimum £500 investment.
But remember if inflation falls over this period, you will only get the 1% on your savings. Read more about inflation-linked accounts here.
8. Don't crystallise your stock market losses
Recent turmoil on the stock market is extremely unsettling, but think very carefully before rushing to cash in all your investments as this will simply crystallise existing losses.
Have a sound basis for selling your shares and be wary of market panic. Historical evidence shows that shares still outperform cash over long term periods so if you can afford to, experts advise sitting tight and trying to weather the current storms.
9. Make use of tax shelters
While savers have little choice but to swallow the bitter pill of paltry returns, make sure you take full advantage of tax-free shelters available.
In the current tax year (to April 5 2012), each individual can stash up to £5,340 into a Cash ISA, which means you won't pay a penny of tax on interest earned.
But it's still important to shop around for the best rates on ISAs. West Brom has the market-leading easy access Cash ISA paying 3.07%.
It also accepts transfers on which means if you have money invested in previous tax years sitting in ISAs that are no longer paying a competitive rate of interest, you can transfer it to the West Brom without losing the tax-free status.
10. Don't be afraid to seek help
According to a recent report by MoneySupermarket, more than a quarter (26%) of UK adults suffer from 'Bill Phobia', where they feel stressed and anxious prior to opening household bills.
This results in one in five (20%) of householders delaying opening and paying their bills, as they are too afraid to tackle them.
The worst thing to do in this or any other financial tight spot, is to bury your head in the sand, says Clare Francis, editor at MoneySupermarket:
"If you feel things have got too much and you can no longer cope financially, speak to one of the free-debt charities such as the Consumer Credit Counselling Service (CCCS) or Citizens Advice. The sooner you seek help, the better."
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
We're free, independent and compare all UK credit cards, as well as offering exclusive deals you can't get anywhere else.
Contact MoneySupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. © Moneysupermarket.com Ltd 2011.
Rate This Article
Click on a star to rate this article.
