Survival guide for Black Friday frenzy

As thousands of shoppers prepare to let go of their hard-earned money, in search of household and other goods on another big shopping day of the year, JustMoney has urged consumers to plan ahead.

Black Friday, taking place on November 26, has become a tradition in SA for many retailers, as consumers search for bargain prices.

Marketing manager of personal finance Shafeeka Anthony said as the day approaches, it is important to plan ahead as a consumer to avoid getting caught up in the shopping frenzy.

“There’s a lot of pent-up demand among South Africans for in-store shopping experiences, and those who’ve kept their jobs and saved income are in a powerful purchasing position. However, it’s important to keep in mind that Covid-19 will impact us for months, if not years to come.

“While it’s tempting to blow your savings on a holiday, or to refresh your wardrobe for social gatherings, the growth prospects for the South African economy are muted.”

Anthony said job layoffs and retrenchments remained a strong possibility for many employment sectors.

“While you may enjoy good health at present, Covid-19 or another misfortune could impact your long-term earning ability.”

He urged consumers to avoid bad debt.

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Anthony said store and credit cards enabled one to buy items that they could not afford with a single payment.

“Paying your instalments timeously shows you are a responsible borrower, which is good for your credit score. However, avoid being saddled with debt at high interest rates. Opt for interest-free plans wherever possible, and be sure to pay the full credit card amount, or store card instalment, every month.”

He offered five tips to consider before a consumer unleashed their credit card as the month-end approached:

– Plan ahead: Distinguish between what you and your family really need – such as school uniforms and medication – and nice-to-haves, like expensive festive season gifts.

– Do your homework: Having determined the items you require, begin your online research early. Compare prices to ensure you get the best value for your money and add chosen items to your shopping cart so that you are ready to buy before stocks sell out.

– Set limits: Determine what you are prepared to spend on your desired items and stick to your budget. Do your best to avoid impulsive purchases.

– Be cyber-aware: Crooks are equally excited about Black Friday. Shop on legitimate sites (look for a padlock icon preceding the website URL), read customer reviews, and always protect your personal financial information.

– Compare interest rates charged by leading retailers on store accounts.

“A final tip is to remember to insure expensive purchases once they are delivered to your door,” says Anthony.

“If you’ve invested in a designer watch or statement art piece, you need to protect it against theft and damage. Homeowners’ insurance includes personal property protection, which you may wish to supplement for individual items.”

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