Warning: Avoid Black Friday debt
The National Financial Ombudsman (NFO) warns buyers to buy with a budget and to buy with their heads, not their emotions.
Black Friday is coming up and buyers may go overboard with the enticing prices.
The National Financial Ombudsman (NFO) warns buyers to buy with a budget and to buy with their heads, not their emotions.
The NFO advises consumers to protect their financial well-being during Black Friday and to remember that financial gain comes from disciplined spending rather than a seasonal discount.
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Credit Division Lead Ombudsman at the NFO, Howard Gabriels said, “Unplanned, credit-based purchases can quickly escalate into unmanageable debt, impacting people’s ability to save for homes, education, retirement, or essential emergencies.”
He urged communities to exercise and avoid pitfalls associated with spending as that will get them in debt that lasts beyond the sales season.
Tips for responsible Black Friday spending:
1. Set a spending budget – determine a spending limit based on your finances and stick to it to avoid overspending.
2. Avoid high-interest credit options – lower-interest options will assist in having a repayment plan that is easier to manage.
3. Prioritise long-term financial goals- weigh the benefits of today’s purchase against tomorrow’s goals eg: saving for a home or retirement.
4. Leave room for emergencies – spending all your savings on Black Friday can leave you vulnerable to unexpected expenses leading to debt.
5. Monitor your credit usage- keep credit balances low to maintain your credit score.
Gabriels added the NFO exists to investigate and resolve unresolved credit-related problems that come up between consumers and credit providers.
