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Surviving the Januworry blues

Excessive spending leaves many people out of pocket during what is infamously known as the longest month ever.

During the festive season, many people tend to forget that January is just around the corner.

Excessive spending leaves many people out of pocket during what is infamously known as the longest month ever.

“With the wait until January’s pay cheque often longer than normal [as many people get paid early in December], financial self-discipline at this time of year is particularly useful, albeit one of the most difficult things consumers will be doing,” said head of financial education at Old Mutual John Manyike.

Manyike admitted that while being financially strict wasn’t always easy during the festive season, it was not impossible.

“The biggest mistake many South Africans make is to treat December differently and believe that it’s just one month and so it’s okay to splurge and indulge without consequences.”

Old Mutual shares the following festive don’ts:

  • Don’t spend money you don’t have.
  • Don’t be tempted to reverse debit orders or skip payments. Having to pay double with added interest-only creates extra pressure in January.
  • Don’t increase your overdraft or credit card limit. In fact, try to use your card only in an emergency situation.
  • Don’t take up store offers of a ‘January payment break’. These offers may rack up interest on the outstanding debt, and they don’t prevent a hangover, only postpone it. Rather opt to pay your installments as usual and work towards ridding yourself of debt.

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