DMP, IVA or Consolidation Loan?

Budgeting for Christmas can actually make people more generous, a sector commentator has claimed.

Saving more can lead to creative debt management solutions, while spending time with loved ones could be the ultimate gift this holiday season, suggests financial expert Jasmine Birtles.

"Taking your grandmother out to the cinema or to a cafe is much more fun and much more appreciated than some stuff you picked up in the shops," she says, although for people who are seriously in debt, an IVA could be one way to ensure that next Christmas is not as frugal.

And budgeting can change the way individuals think about money, Ms Birtles continues, while she has joined with Lloyds TSB to create a spending guide podcast.

Research by the bank found that 77 per cent of people will take advantage of deals, special offers and reward schemes to save on present buying.

But for those whose money problems need more attention, an IVA could be one way to organise finances, which could see the amount of debt owed reduced.