It’s almost time for Christmas festivities to begin. And, given that we as South Africans, and the rest of the world, continue to face financially draining challenges, it stands to reason that many of us would want to let off some steam and enjoy the silly season without having to worry about money.
Is it, however, worthwhile to incur additional, Christmas-related ‘bad’ debt (expensive gifts, more decorations, extra travel, or food expenses not properly budgeted for) during the season? And, can you truly shy away from what it will cost you on top of all you have had to deal with recently?
Remember: everything extra that you buy on credit adds up in the end, and it’s a ‘gift’ that will continue to rob you of your financial freedom. The only ‘giving’ aspect of adding ‘bad’ debt to your list of usual financial obligations is to end up over-indebted.
From DebtSafe’s 2022 research results, it is evident that retail credit is the type of debt consumers are primarily behind or in arrears with. Therefore, I implore you and the rest of the South African community to not allow the Grinch, also known as ‘bad’ debt, to spoil your future financial endeavours.
Since it is the season of giving, give yourself and your family a chance to have a secure, sustainable financial future. And, since debt can haunt you for years to come, rather avoid any extra Christmas shopping during the holiday season.
‘Bad’ debt is credit that:
Examples of ‘bad’ debt include:
Instead, continue with a proper, personalised debt management plan and stick to your Christmas budget this holiday season.
Here’s how:
One final tip when it comes to successful debt management (and to avoiding adding additional ‘bad’ debt to your pile), is that it is vital that you continually work on your personalised debt management plan.
Always do a thorough affordability check before taking on any debt (even Christmas debt), as this will help you determine whether the debt is not more burdensome to your situation.
Don’t let ‘bad’ debt be the killjoy that ruins your festive season or any future Christmases. A Merry Christmas is not about how much money you spend; it is about the people you spend quality time with. So, on that note, don’t repeat the ‘bad’ debt mistakes of Christmas past.
Merry frugal Christmas!
By Neil van der Walt, marketing manager at DebtSafe.
This article originally appeared on Moneyweb and was republished with permission. Read the original article here.
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