The National Credit Regulator (NCR) has urged South Africans to be cautious with their spending this Black Friday.

Anne-Carien du Plooy, acting manager: education and communication at the NCR said, “Although the day might be beneficial for some consumers, it could also put financial strain on those who participate without a proper budget and planning.

“Certain stores have already announced that this year’s deals will start earlier. In these difficult economic times, consumers are cautioned to avoid partaking if they have not properly planned or budgeted for it. They should rather save their money for emergencies. South Africans are further advised not to use credit as it does not amount to saving.

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“Instead, they will end up paying more due to the addition of interest and other fees such as monthly service fees, once-off initiation fees, credit life insurance and many others,” she said.  

Du Plooy added that failure to repay credit will have negative consequences for consumers, such as being adversely listed at the credit bureaus and/or having legal action taken against them.  

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A budget is a crucial tool that assists consumers with knowing whether they can afford certain deals or not.

Helpful tips to consider:

• Set up a realistic budget of what you can afford to spend and stick to it

• Plan and draw up a list of what you need

• Check the items and prices before Black Friday to do a comparison and to ensure that you are getting the better deal • Avoid buying food on credit

• Avoid using unregistered credit providers to get quick loans as you will pay dearly for those • Remember, cash is king.

Source: The National Credit Regulator