Handle your money wisely this festive season

While we are celebrating the holidays and spending time with our loved ones, it is easy to lose track of how much money we are spending.Some of us even get into debt trying to have fun.

The Gauteng Office of Consumer Affairs (GOCA) advises consumers to stay alert, to spend money wisely and borrow wisely during this period.

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These tips will save you from ending up ‘Januworried’:

SPEND WISELY TIPS:

• Set a budget for the festive season.

• Buy only items and products you can afford.

• Pay cash and avoid credit – when you use credit, you pay twice on the initial sale price due to the high interest rates.

• Shop smart and save – by shopping around and visiting price comparison websites, you ensure a good deal.

• Remember the three Rs – you have the right to a repair, a replacement or a refund for defective and unsafe goods purchased online as well as those you bought in store.

• Use your bonus or 13th cheque to pay off your debts, credit cards or home loan –this will not only reduce the interest payable but also the term of the debt. For example, paying extra into your home loan each month, or paying lump sums every time you have extra cash will reduce the 20-year term.

• You should make a provision for unforeseen circumstances by setting up an emergency fund.

• Spend wisely this festive season – remember most stores have sales at the beginning of the New Year.

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BORROW WISELY TIPS:

• Draw up a budget and stick to it.

• Borrow only when there is a need, not because someone is offering credit.

• Borrow only for what you need – draw up a list of your needs and wants, and prioritise your needs.

• Plan your repayments before borrowing money.

• Before you sign any agreement, make sure you borrow from a registered credit provider or lender.

• Shop around. Get a pre-agreement statement and quotation from credit providers before you take any credit to compare costs, such as initiation fees, interests, credit insurance, other additional fees, and repayment terms offered by different credit providers.

• Before any credit is granted, credit providers must conduct an affordability assessment for consumers to avoid being over-indebted. As a consumer, you must be truthful about your income and expenses.

• Read all the terms and conditions before signing any agreement and make sure that you understand them. Do not sign until you are sure.

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• Before you sign any credit agreement, find out all about the cost of credit and all the costs involved, such as initiation fees, interest, service fees, credit insurance, etc.

• Be careful of online lenders, some lenders are fake and are not registered with the National Credit Regulator.

• Pay your debts on time.

For more information, advice and consumer-related complaints, contact the Gauteng Office of Consumer Affairs on 011 355 8006 or email consumer@gauteng.gov.za.

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