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People will recycle old gifts this Christmas to give to others, it has been claimed, although this could lead to a potentially embarrassing situation.

A study by Credit Expert reveals that 18 million individuals will use this money-saving technique, although for those who would rather buy new and avoid a family showdown, a loan could provide that extra bit of cash to get households through the holiday season.

"Whatever you do spend this Christmas, you can improve your finances by remembering the crucial thing is to borrow responsibly," says Jim Hodgkins, managing director at CreditExpert.co.uk.

Such ways to borrow could be to take out a secured loan, which may have a lower annual percentage rate than other loans, therefore freeing up more cash that could otherwise go on repayments.

It was previously revealed by a Lloyds TSB study that 48 per cent of people admit that they cannot be as generous this year as they were last Christmas.

However, secured loans could be one way to fund expenditure such as paying for the festivities, although any purchases for the new year - like a new kitchen - may also be paid for this way.