As money from the first maturing SSIAs starts to come on stream later this week, the Financial Regulator has called on people to consider paying off debt.

Starting from Thursday, June 1st, and through the calendar month, 41,105 account holders are scheduled to receive their money. Goodbody Stockbrokers has estimated the average account holder will receive €13,800.

That means an estimated €567 million will become available to account holders in June.

During July a further 81,557 account holders are due to receive their funds. That means a total of €1.125 billion will become available that month.

A total of 1,094 million accounts, worth €15 billion, are due to be paid out over the coming 12 months.

By far the biggest payout will occur in April of next year, when 543,429 account holders are due to get a total of €7.5 billion.

Both the Financial Regulator and the Money Advice and Budgeting Service (Mabs) yesterday advised people due to receive their SSIA savings to consider using them to reduce their debts.

Consumer director with the Financial Regulator Mary O'Dea said that with growing levels of personal debt, the money in maturing SSIAs could make a significant difference if used to pay off expensive borrowings.

"Interest has to be paid on all types of loans. Whether you owe a lot or a little, the longer you have a loan the more it will cost you in interest payments, and some loans like credit cards can be more expensive than others," she said.

"Consider using your SSIA to pay off high interest rate loans first. Even if you have no difficulty repaying your loans now, think about whether this might be a good option for you. Reducing outstanding debts will give you peace of mind and will give you more flexibility."

A survey carried out by the financial regulator found that only one in 10 people planned on using their SSIA money to pay off debts.

"You have options," said Ms O'Dea. "You could use some or all of your lump sum to reduce your debts, or you could divert your current monthly SSIA savings towards repaying borrowings, or you could do both. Take some time to weigh up your options."

She urged people due to receive SSIA money to consider the benefit of allocating even a small amount of their lump sum towards paying off their loans. It could make a big difference in the long term, she said.

"For example, a person who has saved a large lump sum in their SSIA and has a five-year, €20,000 car loan, would save over €2,500 in interest by paying off their loan after just one year with their SSIA money."

Michael Culloty of Mabs said his agency was seeing an increasing number of people coming forward with debt problems.

"The SSIA savings will give people a possible once in a lifetime opportunity to put their finances on a sound footing by eliminating or reducing expensive borrowings," he said.

He also encouraged people to consider continuing the savings habit in order to provide for a "rainy day".

A booklet helping people look at their options, the Little Black Book of SSIAs, has been published by the regulator.

Copies of the booklet and other useful information on personal loans and credit are available by phoning the consumer helpline on lo-call 1890 77 77 77, by visiting www.itsyourmoney.ie or by calling into the Consumer Information Centre at College Green, Dublin 2.

Mabs is a free confidential and independent service for people in debt or in danger of getting into debt.

It has 65 offices nationwide and is funded by the Department of Social Welfare.