How to clean up your finances in 2010

Whatever your financial ambitions, there is one golden rule that applies to all New Year resolutions – be realistic. You’re doomed to fail if you set your sights impossibly high. Start by brainstorming what you really can achieve, then fix your goals. These tips should help you to get going.

Go through your bills and statements and list every penny you spend – try separating payments into weekly spending, such as food; monthly outgoings, such as credit card repayments; and quarterly or annual payments, such as car tax.

Next, see how much you’ve borrowed and get to know your credit report. This lists your cards, loans, mortgage and other credit accounts, such as mobile phone and catalogue accounts as well as your repayment record and recent applications for credit.

Lenders check it when they decide whether to make you an offer and what terms to set, so it’s important that it’s up to date and accurately reflects your circumstances.