Festive season survival guide: Getting through Januworry without Mashonisa

Don’t let your early pay-day ticket turn you into a moreki (big spender) this festive season − mind the month of Januworry around the corner.

Next weekend might feel like a lottery mania marked by overflowing piggy banks as most companies release salaries earlier amid year-end closure.

While it might be difficult to resist spending that well-deserved bonus, just remember that cheque should last until your next pay-day.

So, whatever you do, don’t allow the season to be jolly leave you joyless in January.

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Lessons from the past

Nedbank executive for financial wellness and advisory, Dr Frank Magwegwe advised South Africans to align their holiday plans and spending with their actual financial situation.

“Determine how much you can realistically afford to spend over the holidays without impacting your January finances,” he said.

December holidays seemingly have a strong hold over consumers, with many repeating the same spending mistakes of the past.

Magwegwe recommends taking lessons from history − reflecting on what has worked before versus what didn’t.

“Set aside money for January’s bills in advance. This proactive approach can prevent the need for emergency borrowing,” he said.

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Beware of uMashonisa

If history prevails, many people may find themselves resorting to debt once again, to get through the longest month of the year.

As desperate times often call for desperate measures, some may even consider going to uMashonisa (loan shark) for a quick relief to January’s financial strain.

Education and communications officer at the National Credit Regulator (NCR) Winnie Rabathata cautioned against borrowing money from loan sharks.

“Consumers should avoid unregistered credit providers such as mashonisas or skoppers to access credit [because] they will pay dearly at the end,” she told The Citizen.

Unregistered credit providers are not regulated by the NCR, often charge high interest rates and typically have not proper collection methods in place.

“Unregistered credit providers charge exorbitant interest rates and use other illegal collection mechanisms such as card retention,” warned Rabathata.

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Debt-free festive season

The last thing you want is having to spend a significant part of your new year paying off loans from the previous year. Short-term December festivities should not be a springboard to a long year of debt.

“The festive season is a time for celebrations and togetherness, but it should not lead to financial stress and over indebtedness in the new year,” said Rabathata.

The credit management expert further shared useful tips to enjoy the most wonderful time of the year without getting into debt.

• Avoid using credit cards unnecessarily
• Pay your accounts on time and in full
• Drawing up a festive budget and making shopping lists to manage your expenses
• Always remember that Cash is King – (if you don’t have cash for it, you don’t need it).
• Don’t spend money on a “soft” lavish lifestyle to impress others − live within your means.
• Compare prices between different retail stores
• Save money for January expenses

“By planning your finances well, making wise spending and credit decisions, prioritising your debts, and refraining from impulsive purchases, you can ensure that this festive season is not only joyous but also financially stable,” said Rabathata.

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