However, that’s no reason to splurge, so here’s a few tips on how to keep your spending savvy.
The National Credit Regulator (NCR) wants to remind consumers that January is also just around the corner, and your salary will have to last until then.
Mpho Ramapala, education and communication manager at NCR suggests that end-of-year bonuses should be used to pay debts and bills, “Contact your credit providers to negotiate lower repayments or contact a debt counsellor for assistance. Debt counselling is meant for over-indebted consumers and it is not free of charge.”
Below are some tips on spending wisely:
1. Keep track of your spending by either jotting down or keeping the receipts of everything you buy.
2. Request a pre-agreement statement and quotation when applying for credit as it will enable you to shop around and do a comparison on the cost of credit. Read and understand your pre-agreement statement and quotation – if they offer you credit life insurance, research what it actually covers.
3. Look for loans with NCR-registered credit providers, which can be identified by a window decal (an orange sticker with the NCR logo) and a registration certificate that will also state the NCR credit provider registration number.
4. Don’t leave your identity documents, bank cards and pins or Sassa cards with credit providers when applying for credit as this is a criminal offence. Make sure you report cases to your local police station where your bank or Sassa cards and identity documents were taken by credit providers.
5. Do a budget for the festive season and include all your debts, rent, electricity, water, insurance, transport, gifts and entertainment.
6. Write up a shopping list to avoid buying unnecessary items.
7. Try and be proactive by doubling-up on your regular payments such as mortgage or rent, lights and water by arranging it with your credit providers. That way you will be able to afford costs such as school fees and uniforms which will hit you at the start of the new year.
8. Always prioritise your home loan and rent.
9. If you borrow money, make sure you borrow only for what is strictly necessary, and ensure that you can afford the repayments.
10. Limit yourself to a spending amount for each person to help keep track of your spending.
11. Choose presents that last long after Christmas. Items like school stationery, uniforms or other useful items are a better investment.
12. Don’t splurge on expensive gifts, rather set up a savings fund and put away an amount for your loved ones each Christmas. Over time, it will grow into a bigger pot of money that can be used to fund school fees or pay off a car.
13. Entertain at home. Ask guests to bring something for the meal so you split the costs of your entertainment.
14. Each year, set up a separate fund for birthday and Christmas presents as well as holidays. Keeping this money separate will help you save for special occasions while at the same time fund your day-to-day living expenses without going into debt.
15. Don’t forget to get a copy of your credit report from any credit bureau. This will help you know your financial standing. Should you need an additional copy of your credit report within the same year, there will be a fee that credit bureaux will charge.
Details: www.ncr.org.za
