How to cope with unplanned festive season spending
Many of us might have an unexpected cash flow hangover from unplanned festive season spending.
If you are facing a January spending crunch, you are not alone. On top of demands for school fees and last-minute uniform or stationery requirements, you might also have an unexpected cash flow hangover from unplanned festive season spending.
A survey of festive season spending done by global accountancy firm Deloitte has found that gifts represent only one-third of the average holiday spend.
In fact, the bulk of spending over this period is related to sprucing up your wardrobe and your home, entertaining at home and socialising outside the home.
“It is easy to underestimate how much these extras will add up to, and how they play havoc with our New Year budgets,” said Richard Mukheibir, CEO of Cash Converters.
These seven strategies from Richard will help rescue you from this situation:
1. Know your cash reserves: Can you still access any of the cash you received as a Christmas bonus? Do you have a rainy day account for emergency funds or other income due that you have forgotten about?
2. Work your salary: You might have discovered there is too much month for your money but at some businesses, such as Cash Converters stores, your salary slips can open the door to a payday advance without any other form of security. If you are permanently employed with a salary that is electronically deposited into your bank account, you can borrow an amount of between R400 and R4 000 through a Sunny Day PayDay Advance mini-loan that is simply deducted from your bank account on your next payday.
3. What can you sell? If you do not have a regular salary, look around your home for items that you have fallen out of love with or perhaps never even loved in the first place. When you sell, staff at businesses such as Cash Converters will test that any item offered for sale is in working order and ask you for ID.
Check and thoroughly clean any items you have decided to sell. The better their condition, the better the price they will fetch. Another plus that can add value is remembering to bring in the accessories that belong to the item you are selling, as well as the packaging in which it was sold, if you kept it.
4. Consider taking a loan from yourself: This is essentially a form of cash advance that is secured against your goods and valuables – similar to a buy-back. Choose this if you need to raise money fast but do not want to part forever with something you value. You will receive cash within 15 minutes against your belongings and any items you offer as security will be protected in a lock-up, waiting to be returned to you when you repay your loan within the month.
5. Be age-conscious: Some businesses insist that anyone selling or pawning with them must be at least 21 years old. However, Cash Converters will buy or advance cash against goods from anyone aged 18 or over with a valid identity document. This could be your passport, driver’s licence, bar-coded ID or Smart ID card.
6. Be protected: Check that the business you choose to deal with for a cash advance on your goods or a salary advance is registered with the National Credit Regulator. This will protect you against the sky-high interest rates often charged by unregistered lenders and also ensure that the short-term credit agreement that you are asked to sign is in line with the National Credit Act. Avoid an agreement that demands you leave your ID document as security or wants access to your bank card and PIN – these are sure signs of loan shark tactics.
7. Ready, steady, go: Selling goods, securing a cash advance against your valuables or taking a small loan against your salary should be a quick and straightforward process as long as you make sure you have the required documentation with you.
Do you perhaps have more information pertaining to this story? Email us at krugersdorpnews@caxton.co.za (remember to include your contact details) or phone us on 011 955 1130.
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