Tuesday 7th of December 2010
Individuals who are being forced to use money they receive as gifts to pay off their debts may decide to start asking individual voluntary arrangement (IVA) questions in an attempt to wipe their slates clean and start enjoying their money again.
Research carried out by First Direct found that money handed over during the holiday season will be used by more than a third of Brits to reduce their overdraft.
According to the study, individuals will hand over a total of £587 million in financial gifts before the end of the year, with the average amount standing at £67.
"It seems the money is likely to be used for more sensible options such as being put away into savings, to supplement spending and to pay off debts," said senior savings product manager at First Direct Richard Brown.
A recent investigation published by the insolvency trade body R3 found that more people are now expecting their financial situation to worsen in 2011, which may lead them to ask IVA questions.
By Rachel Powell
