DMP, IVA or Consolidation Loan?

In what could be seen as the most unoriginal debt management, people are looking to tackle their money troubles by recycling old gifts to give as presents this Christmas, a report says.

According to CreditExpert, 18 million UK adults intend to give unwanted presents such as CDs and toiletries to their family and friends, after 53 per cent of people claimed that they were struggling financially.

"How much we spend this year on Christmas is a concern for many of us and recycling presents might seem like an attractive option," says Jim Hodgkins, managing director of CreditExpert.co.uk.

Furthermore, he adds that people should keep track of who has previously given them what to avoid any awkward situations, although a debt consolidation loan may help individuals avoid any negative consequences.

Retail analyst Verdict Research states that 38 per cent of shoppers' Christmas spending will be on food and other groceries.

But for people who do not want this holiday season to be totally frugal, a consolidation loan could leave spare cash for some Britons to spend on new presents by merging debt into one monthly payment.