Alluring deals on Black Friday should not lead to a bad credit listing
Local residents should exercise restraint in erratic spending next week Friday
Mbombela – Consumers are cautioned against getting caught up in Black Friday fever, which might lead to reckless spending decisions, by the National Credit Regulator (NCR).
White River debt counsellor, Derico Reniers, stated that you should not incur more debt just to spend on Black Friday. ”Buy for cash or don’t buy at all,” she advised.
It is advisable to first draw up a to-do list, which separates immediately needed goods from those that you merely want. You should then examine your budget to ascertain if you will have the necessary funds to buy the “want” goods.
Your net income minus your living expenses, will give you a good indication of the money left in your budget for unnecessary purchases, according to Ntombizodwa Mahlangu, the communications officer at the NCR.
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“You have an option to buy on credit, but consider the credit-related costs that you will have to pay over a long period. Deliberate over your ability to repay the debt and decide whether it is worth buying on credit during Black Friday,” Mahlangu said.
Adv Kedilatile Legodi, acting manager of education and communication at the NCR stated that when you buy on credit, you will be liable for the finance charges such as interest, monthly service fees, once-off initiation fees, credit life insurance and more.
Buying on credit may lead to the inability to repay the credit granted. Should the consumer be in a position not to repay the credit, credit providers will take legal action and this will negatively affect your credit record. An adverse credit record can also affect people seeking employment, if the job requires you to work in finance.
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According to Adv Legodi consumers should remember the following on Black Friday:
- Not all deals are good, as some items may drop even further closer to Christmas.
- Avoid buying food on credit.
- You can conduct a financial health check and get a free copy of your credit report from registered credit bureaus on the NCR’s website.
