Don’t find yourself getting black listed this Black Friday

Shopping addiction is very real and before many consumers know it, they find themselves in the precarious position of being blacklisted by their credit provider.

With Black Friday looming for many shoppers eager to get their money’s worth, the National Credit Regulator (NCR) has cautioned consumers to think before they swipe this Black Friday.

In order to practice self-control, the NCR has advised that you first draw up a list of what you need versus what you want – only then checking your budgets to establish whether enough funds are available.

Warning that should you not have enough funds available, the NCR advises that if buying on credit is your only option, first consider the credit related costs involved with paying back the money over time, as well as the financial strain that may place on your pocket monthly.

“When you buy on credit, you will be liable for related costs such as interest, monthly service fees, once-off initiation fees, credit life insurance and others,” said Advocate Kedilatile Legodi, NCR acting manager of education and communication.

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Shoppers are reminded to never underestimate or take for granted the value of planning ahead and budgeting for events such as Black Friday. By doing so, you avoid falling into the trap of buying things you do not need and, through budgeting, ensure that spending remains within limits.

“Although Black Friday may indeed be providing you with an opportunity to buy goods on special and discounted prices, you still need to make use of this opportunity in a wise and responsible manner,” said Legodi.

Getting caught up in the moment of hunting for the best deals this Friday may see shoppers buying on credit without the ability to repay the cash used which may see credit providers take legal action against consumers.

This action according to the NCR will not only negatively affect credit ratings for consumers, but may result in them failing to obtain credit in future.

“Not only will accessing future credit be a struggle, it will be expensive because credit providers will charge you higher interest rates in comparison to those who have positive credit records. This can also affect people seeking employment in cases where the job requires you to deal with cash.”

How to make responsible choices on Black Friday:

• Plan and draw up a list of what you need;

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

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

• Should you decide to buy, stick to what is on the list;

• If buying on credit, consider the related costs; you may not be saving;

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• If buying on credit, consider your ability to repay the debt; you may be signing up for financial troubles;

• Remember, cash is king;

• Remember, not everything is really a deal, some items may drop even further closer to Christmas;

• Avoid buying food on credit;

• Do not forget to conduct a financial health check and get a free copy of your credit report from registered credit bureaus on the NCR’s website: www.ncr.org.za.

Are you unsure if your shopping habits are healthy or unhealthy? The South African Depression and Anxiety Group urges you to get in touch with them at 0800 70 80 90 or at 011 262 6396 from 8am to 8pm.

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