The New Year means a new start – but it can be hard to know where to begin. If you’d like to get your finances in order in 2007, here’s a checklist that could help you to achieve your goals.

1. Find out what you owe

You need to understand your financial position before you can improve it. A good place to start is your credit report. This is the personal history of the credit you have, such as credit cards, loans and mortgages, plus your repayment record, including any court judgments against you.

It gives an instant snapshot of your current status and how well you are coping – and it can act as a wake-up call if you’ve been avoiding your debts.

2. Get organised

Check all your statements from bank and building society accounts, credit cards and loans so you can see where your money is going – and where you can use it better. File them carefully and make sure every month that there are no double or missed payments.

Make sure you pay your bills on time, after you’ve checked them, too. Then file them as well.

3. Set a target

Now you know where you are, it’s time to think carefully about where you want to be and plan how you’ll get there. Short of winning the lottery, you’re unlikely to end the year totally debt-free and the proud owner of a fabulous new home, so be realistic. For example, you might want to reduce the amount you owe on your credit cards or save for a new car.

Review your plan every month to see how well you are doing.

4. Make the most of your credit report

Lenders check your credit report when you apply for loans, mortgages, credit cards and other forms of credit. If it shows that you make regular repayments and aren’t overstretched, lenders are more likely to offer you a good deal, so it pays to tidy up your report.

Make sure it’s up to date and accurately reflects your circumstances. You can query anything you disagree with and even add a note of explanation if exceptional circumstances, such as illness or an accident, caused temporary problems.

5. Don’t pay too much interest

Borrowing doesn’t come at a fixed price, so look at the amount of interest you are paying on cards, loans, mortgages and so on. It could be worth your while to find new deals – for example, moving to a new credit card that offers a 12-month holiday from paying interest or rolling up several debts into a single, cheaper loan.

When you do your research, be careful to ask lenders for a quotation, or they may think you’re making an application and leave potentially damaging credit application searches on your credit report. If other lenders see lots of these ‘footprints’, they may think you’re desperate for money or even that a fraud is being planned. That won’t improve your chances of getting the deals you want.

6. Change your habits

You might be surprised by how much you can save by adjusting your everyday habits. Getting your coffee free from the office machine instead of spending £1.50 a day on a latte will save you the better part of £400 a year. Do you really use that expensive gym membership? A jog in the park is free. Could you visit the local market instead of buying ready meals?

So you don’t feel deprived, reward yourself by setting aside some of this money in a savings account and use it for a special treat, such as a holiday. The rest can go towards achieving a major goal.

7. Keep your identity safe

ID fraud is one of Britain’s fastest-growing crimes, so don’t let thieves steal your identity and run up debts in your name.

Shred personal and financial documents before binning them, forward your post when you move, don’t keep your PINs with your cards and never give personal information to cold callers or e-mailers. The government also recommends that you review your credit report regularly to see if there have been any new applications for credit in your name. If you spot anything unfamiliar, tell the relevant lender immediately – and stop the thieves before they can do any damage.

• See your Experian credit report free with a 30-day trial of CreditExpert, the credit monitoring and identity protection service.