Spend wisely this festive season, January is a few weeks away!.
Advocate warns that reckless spending over the festive season period without due consideration of January may lead some consumers directly into the trap of unregistered credit providers.
The National Credit Regulator (NCR) has warned South Africans to spend wisely this festive season.
According to Advocate Kedilatile Legodi, Acting Manager: Education and Communication at the National Credit Regulator (NCR), many consumers complain that January is a long month, but like many other months, January also has 31 days.
He said what makes January longer, is how you spend your money during the festive season. He further reminded consumers that some will receive their December salaries earlier than usual and others will be receiving bonuses.
“Bonuses often present a great temptation to buy more; however, consumers are strongly encouraged to draft a budget to ensure that they spend what they have. Consumers are further encouraged to get into the habit of allocating a portion of their budget to savings,” said Legodi.
“Consumers must remember that the salary paid in December is the same income that has to cater for January expenses such as school fees, school uniforms, food, transport and others. Failure to consider January expenses before spending during the festive season, will indeed make January feel longer and financially stressful,” added Legodi.
Legodi warned that reckless spending over this period without due consideration of January which is a few weeks away may lead some consumers directly into the trap of unregistered credit providers informally referred to by many as abomashonisa.
“Desperation to borrow money in order to cope with January expenses will make you a target of unregistered credit providers who would usually advertise using phrases such as ‘blacklisted consumers welcome’ and ‘cheap credit’ and often require you to pay a fee before they pay out the alleged approved loan.”
Below are some tips for the festive season:
• Plan and draw up a list of your needs.
• Set a realistic budget for what is on the list.
• Prioritise your home loan, rent and school fees. Where possible, pay more.
• Buy school uniforms and stationery now when you have money.
• Start saving for next year’s projects such as holidays, renovations, studying, retail sales/ specials and do not rely on credit for this.
• If you are battling with your debts, contact a registered debt counsellor for assistance.
