Banking exec gives advice on festive season spending
JOBURG – Prices generally increase a month or so before December in anticipation of the festive season buying frenzy.
With Christmas around the corner, now is the time to consider how you spend your earnings over the festive season – and plan ahead for it.
This according to Mellony Ramalho, African Bank’s group executive officer who said people tend to take on unnecessary debt which can be crippling as next year’s expenses start rolling in.
Read: Help your pancreas survive the festive season
Ramalho said people often don’t plan properly for the festive season and end up overspending. She suggests making a list of the items you will need to purchase, or the amount of money that needs to be put aside and create a three-month plan.
“Now is the time to start saving or possibly buying and putting items away,” advised Ramalho.
“There are various options in terms of purchasing items if you don’t have the cash on hand… you can save and buy in December or consider a lay-bye agreement.”
With an instalment plan, a customer can buy goods by paying an initial deposit and repay the rest over a period of time. This option is generally used for high-cost items such as electronic goods and furniture, said Ramalho adding that another option is buying on credit. “What you need to remember is that credit isn’t free.
“Initiating credit with any registered financial entity entails interest, service and initiation fees added to the required amount, which means you pay an increased price for the money that you borrowed when you finally pay that amount back.”
Read: Tips on how to stop wasting money this year
Whatever your plan is for the festive season expenses, Ramalho said the key is sticking to the plan. “Don’t be tempted to dip into your December savings or put your plans on hold to make other purchases. You will see the benefits when the festive season approaches and you are prepared.
“You can also start the new year off-debt and worry-free.”
Details: 011 463 6372.
