Many Britons plan to pay off debts in 2016

Many Britons plan to pay off debts in 2016
Many Britons plan to pay off debts in 2016

Paying off personal debts has moved up the list of financial priorities for Britons in 2016, research has found.

A survey for VoucherCodes.co.uk found clearing debts is second on the list of major spending people have planned for this year, up from fourth place when similar research was carried out a year ago.

Holidays are still seen as a bigger priority than paying off debts, the findings suggest, with a getaway being the most popular major spend planned by consumers for 2016.%VIRTUAL-ArticleSidebar-debt-advice%

Three-quarters (76%) of people surveyed said they have plans for a major spend in 2016 and the average amount of money they expect to put towards it is £1,794.

After holidays and paying off debts, house renovations, a new car and a new kitchen or bathroom are also popular choices.

The research also found Britons are feeling more positive about their finances than they were a year ago.

Some 28% of people surveyed are feeling optimistic about their financial circumstances, up from 25% when similar research was carried out in 2015. Meanwhile,19% of people surveyed are feeling pessimistic about their financial situation for 2016.

Nearly one in four (22%) people expect to have more money to spend on non-essential items in 2016 as the economy recovers, although one in five (20%) expect to have less disposable income this year.

Around one in 10 (9%) people surveyed said they had taken out a credit card over the last year to ease their money woes.

More than 2,000 people took part in the survey.

Here are the top five major spends that people have planned for 2016, according to the survey:

1. Holiday.

2. Paying off personal debts.

3. House renovations.

4. New car.

5. New kitchen or bathroom.

Resolutions 2016: Three Steps to Destroy Debt
Resolutions 2016: Three Steps to Destroy Debt