Britons are set to splash an amazing £22.5 billion in the January sales as the high street fights back after the big freeze, figures showed.
The figure - calculated by money wizard Kelkoo - is up £360 million on 2010, with the rise attributed to the huge price cuts being rolled out on the high street in a bid to cut stock levels.
Kelkoo offers a one-stop shopping service across Europe. But instead of all that spending, the firm suggests that time taken to re-plan finances during this long break from work could save many people a four-figure sum.
Danny Cox, at financial advisor Hargreaves Lansdown, says: "Between Christmas and new year is an ideal time to dust off old investments and pensions and review how they are doing. Is it time to cash in your Premium Bonds? Are you making the most of all your cash savings? And have you made the most of all your tax efficient allowances?"
Kevin Mountford, head of banking at comparison site moneysupermarket.com, says: "We are all feeling the pinch, especially after the increase in VAT from January 4, and it is too easy to sit on mediocre financial products which give a poor rate of return or cost far more than necessary.
"Significant savings can often be made by switching to better deals found by a few minutes of research."
Mortgages are an obvious area to make savings - although many people can't be bothered to change when prospects for interest rates remain so uncertain for the next year.
Ray Boulger, at broker John Charcol, says: "If you are paying more than 3% on your loan, and have more than 15% equity in your home, you are probably paying too much and could find something better.
"Many people on standard variable rate (SVR) loans at the end of a fixed period can't be bothered to move and are waiting to see what happens next."
Boulger thinks it is still too early to fix, with eurozone problems set to cause more turmoil in 2011. Three providers of tracker mortgages - Woolwich, Nationwide and Scottish Widows - offer a drop-lock option to switch easily into a fix when the going gets tough.
In current circumstances offset mortgages also have their attractions - when income from your savings keeps down the cost of a mortgage.
Moneysupermarket.com figures show that a borrower with a £150,000 mortgage on average SVR of 4.74% could save £2,040 a year by taking a two-year Santander fix at 2.65%.
Savers can usually do better for themselves too: Switching from an easy account paying an average 0.81% into the Post Office Online Saver at 2.9% (including 1.25% bonus for 12 months) could generate an extra £213 interest (before tax) per year from a £10,000 savings pot.
For those who seriously overspent during 2010, there's often something to be said for consolidating various loans into one new loan. On this note, Nationwide offers a market-leading 7.5% rate on loans between £7,500 and £14,999 for up to five years to its FlexAccount current account customers.
Swapping a £7,000 five-year loan at an average rate of 11.68% to a Nationwide loan could save more than £125.
What about interest earned on your spare cash? For most holders of bank accounts, the rate of interest paid on your money has drained away so drastically that you hardly notice the item on your bank statement.
But Santander's In Credit current account pays 5% on credit balances, and anyone keeping a £1,500 balance in this account for a year earns £65.25 in interest.
Kevin Mountford points out that anyone needing an overdraft every month could save £253.80 by switching from an account with an average overdraft rate of 16.92% to the Santander Preferred Overdraft Account (0% for 12 months).
Next up are credit cards - which take much punishment during December when presents end up costing more than planned.
The obvious strategy for 2011 is to always pay more than the minimum monthly payment, to slash interest charged on the outstanding balance.
Another obvious saving comes from transferring your balance to another credit card provider to take advantage of a 0% balance-transfer deal for a specified period: Nationwide's Gold Card currently offers 0% on balance transfers for 15 months, and 0% on all new purchases for three months.
Nationwide BS figures show that someone transferring the average transfer balance of around £2,400 could save £337 a year - an average week's wage, after tax - in interest.
The Virgin Credit Card has a 16-month, 0% offer on balance transfers.
On both cars and houses insurance premiums have gone through the roof for many consumers this year - which is a strong argument for shopping around.
Follow these simple tips to shave those premiums: Don't over-estimate the level of cover needed on your home, and pay annually for home insurance rather than monthly. If you are a younger motorist, adding an older driver to a car insurance policy can also help cut costs.
In this extreme winter weather, check your cover carefully: Are you covered for shattered windscreens or frozen locks? Have got breakdown cover in an emergency?
On average, says moneysupermarket.com, consumers who switch insurance providers can expect to save £286 on car insurance and £132 on home insurance.
Travel insurance is becoming expensive too - particularly since the fiasco of Iceland's volcanic eruptions, which have cost millions in claims. Several banks include travel insurance in their standard package. These include the Nationwide FlexAccount, which offers free European multi-trip cover worth up to £80 for a couple.
Energy bills are a growing worry for next year - with many household budgets likely to be hammered from January onwards if the cold snap continues.
Competitive prices are usually assured if you track down a dual fuel online direct debit deal. By switching to the best online tariff instead of staying on the average standard tariff, customers could easily save on average £258 over 12 months.
Mark Todd at Energyhelpline.com thinks the situation is particularly dangerous for hard-pressed households, because wholesale gas prices have soared around 20% since the cold snap started.
"Analysts point to the possibility of yet more rises in household bills as demand soars", he says.
Common sense measures can trim energy costs - turning down the thermostat by 1°C can cut your annual bill by 10%.
Also loft and cavity wall insulation can save up to 35% of heat loss, so installation costs are soon cancelled out by savings. Turning appliances off at the wall instead of leaving them on standby mode also reduces costs.
Finally, it may be the right time to rethink your home TV and IT systems: Bundling your TV, landline and broadband together into one package can result in big savings.
Moneysupermarket.com highlights the attractions of Sky's TV Variety Pack. It includes broadband, line rental and a basic TV package as well as offering unlimited evening and weekend calls.
By bundling products, customers could save on average £219 over the year. It can be worth taking the time to review subscriptions annually and scour the market to ensure you are consistently getting the best deal.
:: Information: John Charcol (0800 617 181 and www.charcol.co.uk); moneysupermarket.com (www.moneysupermarket.com)
Poundnotes
:: Lloyds Banking Group was the most popular share - for both buyers and sellers - in 2010, says Darren Hepworth at execution-only broker TD Waterhouse.
With online deals charged from a flat rate of £8.95, Waterhouse says trades in Lloyds Banking Group, Barclays and Royal Bank of Scotland (RBS) accounted for more than 51% of the top-10 trades between them.
The other big favourite with investors, amazingly, was BP, which more than halved in price between April 20 and June 28 following the Deepwater Horizon rig explosion.
BP was the second most popular share with buyers in 2010, followed by Barclays, RBS and Desire Petroleum.
:: A financial expert has called for homeowners to have three to four months expenditure put aside in a bid to guard against the worst in 2011 - including the long expected surge in interest rates, which would bump up monthly running costs.
Peter McGahan, of Worldwide Financial Planning, says: "A bank loan reduced by £2,000 may only save you £80 per month, but £2,000 will give you enough space to pay for that loan for 25 months.
"Cash flow is important. If you have any loans on a variable rate, be careful to pay off highest interest rate loans first."
:: Now you've got that dog or cat for Christmas, Andrew Ferguson, head of General Insurance at M&S, says it is vital to get good quality insurance.
M&S Premier Pet Insurance offers up to £7,000 a year in vets' fees for illness and injury.
It also offers cover with no upper age limit, no time limit on treatment while a policy is in force, and unlimited telephone access around the clock to a vet nurse with Vetfone.
Also, there's a 15% discount for online buyers.
:: London shares have had a strong run in 2010, and broker Charles Stanley reckons the FTSE 100 is likely to reach 6150 by December 2011.
That's barely 200 points up on its present position (5900-ish), but certain conditions could see it going as high as 6750, according to the broker.
However, Stanley says some experts fear a crash below 5000 by December 2012.
Its share tips for next year include drugs giant AstraZeneca (dividend 6%); drinks giant Diageo (3.4%); International Power (2.8%); Royal Dutch Shell (5.2%); Severn Trent (4.5%) and Vodafone (5.39%).
:: High five savers
Phone No Rate Account Period Deposit Interest paid
Coventry BS 08457 665522 4.75% Fixed Bond (128) 30/04/2016 £1 Yly
SAGA www.saga.co.uk 4.50% (F) Fixed Rate Savings Five Year Bond £1 Yly
AA 0845 603 6302 4.50% (F) Fixed Rate Savings Five Year Bond £1 Yly
Dunfermline BS 0845 733 6688 3.00% 60 Day Notice 60 Days (B) £1,000 Yly
Cheshire BS 0800 243278 2.95% 30 Day Postal Saver 30 Day (P) £1,000 Yly
:: Top five borrowers
Phone No Rate Period Max% Adv Fee Incentive
HSBC 0800 494999 2.29% (rem) variable for term 60% £99 Yes
Hanley Economic BS 01782 255000 2.29% for two years 60% £698 Yes
First Direct 0845 610 0100 2.59% variable for term 65% £99 Yes
ING Direct 0845 603 8800 2.85% disc until 31/03/13 70% none Yes
Hanley Economic BS 01782 255000 2.85% until 31/01/13 75% 75% Yes
Code:
*K- Operated by Internet, Telephone, or Post
*F - Fixed
*P - Operated by Post
*B - Operated by Post/Telephone
*T - Operated by Telephone
*W - Operated by Internet
*H - Operated by Internet/Telephone
*S - Available only to those aged 50 or over
*R - Available to those aged 60 and over.
:: Source: Money£acts - Tel: 01603 476 476 (All rates subject to change without notice).
