PayPal: Save money by not giving it away

It may seem like obvious advice, but it appears not many of us follow it. Many people in the UK may find themselves short of cash this Christmas - simply because they've been too generous.

That is the opinion of online payment service PayPal, which estimates that the average person in the UK has lent out £898.52 to friends and family over the past year.

Almost half of the population (48 per cent) has opened their wallet or purse to help out others - but are they damaging their own finances by doing so?

In some cases, it would appear so - and it would also seem that these small loans can put strains on relationships. Lending money to family members has resulted in 16 per cent of people falling out.

"Money is one of those things that is very embarrassing to bring up, nobody really likes to remind people, but often you need to and you need make sure that you're not getting yourself into debt by being the one that lends money to everyone else around you," said Cristina Hoole, a spokesperson at PayPal.

However, she added that it is important to remember that just because these sums come from friends or family, they still need to be paid back.