The personal finances of contractors and others will take time to balance out following the economic downturn, one expert has said.

Mark Bower, managing director at moneymaxim.co.uk, said that households will take time to rebuild their finances, much like the economy itself.

He continued that households must reduce their credit card bills and move their debt to a cheaper repayment programme.

"For most this won't happen overnight, but over time [this] can help to rebalance both personal budgets and savings pots for the future," he said.

This comes after Priorities of Life report by Scottish Widows found that 35 million Brits are unable to focus on their life priorities.

Additionally, 38 per cent said they are unable to save enough for 2011, in comparison to 2010's 39 per cent.

Thirty-five per cent of those surveyed also said that they are neglecting their overall financial security in the coming year, as opposed to 36 per cent in 2010.