Tis the season to overspend...

We have heard a lot about credit card spending in the last few months and there is no doubt that our flexible friends will be working hard this Christmas!

But what about our long lost friend; cold hard cash?

Over £3.2 billion pounds of cash has been withdrawn from more than 64,000 LINK cash machines so far this December; an increase of £140 million on last year.

Since last Friday, cash withdrawals have been especially, suggesting that last week's quarter-point cut in interest rates boosted consumer confidence and encouraged mortgage holders to spend more freely (although we're not entirely sure that is a clever idea in the current climate.)

Generally though, finding the right gifts for family and friends can be an epic of biblical proportions, so, why not make it easier on yourself and just give them the cash?

Cold hard cash has so many advantages such as; you don't have to trek across town to get it, its handily available from your nearest ATM, one size fits all and if the lucky recipient has already got some, and if, for some reason, he or she is disappointed with such a versatile gift, any shop will gladly exchange it for goods of similar value!

Err but there is that teeny weenie problem; the niggling voice in your head that keeps telling you your "gift" is a bit of a cop-out.

Let's face it, cash gifts at Christmas have an image problem don't they?

Giving your nearest and dearest a few grubby notes doesn't exactly conjure up the spirit of the season, nor does it make you look like you've put a lot of thought into your gift. In fact it makes you look tighter than Santa in his red suit after too many mince pies.

However, rather than getting offended, many of us are actually grateful to get money. 40% of us would rather receive cash or a voucher than a present chosen by someone else, according to new (and perhaps not entirely objective!) research by the VA, the trade association representing the gift voucher industry.

Writing a cheque is marginally more personal than transferring the money online, and also safer, and another danger is that if the recipient is overdrawn, all you are doing is gifting the money to their bank. If you give a cheque they can at least choose which account to pay it into.

You can't be Scrooge-like if you decide to give cash, because there is no disguising how much it cost you. The same is true of vouchers, but they are considered more "acceptable" gifts because they are likely to be used for something special rather than disappearing into the recipient's daily spend.

Giving cash as a gift might sound a bit cheap, but that depends on who you give it to. If they already have plenty in the bank, they won't be too excited at getting a little more of the folding stuff. But if they are short of money, or young enough to be impressed by, say, £20, they might be very grateful.

And if you are still undecided about giving cash, it's time to ask yourself this question:

Would you rather receive more socks, underwear and towels or have the cash?

We thought so too...

Santa is taking a third of your Christmas pay cheque