With so much financial uncertainty around, more debt can make your life even more difficult
As South Africa gears up for the festive season, a counter-narrative is emerging, urging a radical shift in how we approach our December spending.
Chris Coetzee, CEO of the FinFix Group, is spearheading a financial movement, called “No Debt December”. His message lands in a year when global markets soared – perhaps, as he suggests, a little too high.
He warns that there is an unsettling truth behind the booming market.
“The financial backdrop in 2025 is unusual: international and local stock markets are booming simultaneously. With US and local markets rallying, gold prices at all-time highs and reaching new peaks, there is even talk of an AI bubble.
“This confluence of factors creates a powerful sense of financial confidence, but it can also be considered a classic setup. It is the kind of exuberance that historically preceded sharp market corrections. The concern is simple and sobering: taking on new debt right now might become a heavy burden for consumers come 2026 if these global market dynamics shift.”
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We’ve seen the debt bubble burst before
Coetzee says experience from past economic cycles resonates deeply.
“If this perceived ‘bubble’ does indeed burst, we could be looking at a global recession as severe as the early 2000s or the 2008 housing market collapse.
“When international investors seek safe havens, their investments in the local JSE might quickly go elsewhere. This means the ripple effect of global market instability inevitably falls directly into the laps of ordinary South African consumers, making new debt an incredibly risky proposition.”
He warns consumers against lifestyle debt disguised as festive cheer.
“While some debt can be productive, there is a distinct category of ‘bad debt’, especially when you spend your money on luxuries. That holiday loan, taken in the joyous flush of December, can quickly transform into a five-year financial burden, becoming a source of regret long after the festive glow fades.”
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Avoid unnecessary debt
Coetzee says the cycle plays out every year: the “January dread”, or Januworry, when bills arrive, the pressing need for “February repayment” and the crushing “March snowball effect” as initial debts grow beyond control. These are the hidden costs of impulse buys and unchecked festive spending, turning temporary joy into prolonged financial stress that can plague families for years.
It is therefore important to plan for winter during the festive summer, he says.
A simple but powerful metaphor illustrates the point: “It is better to collect the firewood you will need for winter in the summer months.” December, with its bonuses, time off and high spirits, feels like an endless summer.
However, economically and emotionally, winter always arrives. Acting prudently now, by avoiding unnecessary debt, is like gathering that firewood. It ensures you have the resources and stability to weather any storms that 2026 might bring, rather than being caught unprepared.
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How no debt in December empowers households
The call for a “No Debt December” empowers households to protect themselves from a perfect storm that might be quietly brewing offshore. It is a plea to prioritise stability and peace of mind over short-term enjoyment and instant gratification.
What should South Africans do? Coetzee urges consumers to be intentional, not impulsive.
“Speak to a financial advisor to prepare for both good and bad times to ensure you are ready for any scenario. The smartest families this December will be the ones who plan meticulously for their financial future, rather than splurging without a thought for the consequences.
“As the tills ring and the adverts blare with enticing offers, this advice cuts through the noise with refreshing honesty: the future may indeed be bright, but that is precisely why it should not be dimmed with unnecessary debt today.”
