JOHANNESBURG – “The festive season is here, bringing with it a month of holidaying, celebrations and gift-giving. But do not get so carried away by the spirit of the seasonthat you recklessly spend money you do not actually have,” explains Nobantu Motsweni, debt counsellor at Legal and Tax.
According to Nbantu, all too many South Africans begin each January flat broke.
“Many find themselves in the tight corner of owing lots of money that they cannot repay and watching interest pile up on their debts just because they splurged on gifts and holidays they couldn’t really afford.”
Nobantu gives some cash-savvy tips for making your Christmas buck stretch further.
Know your budget and stick to it. Before you take a loan or spend on your credit card for a holiday or gift purchases, be sure that you know how much money you can afford to spend repaying it each month.
Leave yourself some breathing room. Don’t commit every free cent you have to a loan, in case the price of food, electricity, school fees and other expenses increases.
Avoid taking loans from anyone but a credible credit provider, such as a bank or a well-known retailer. The lender should be an Authorised Financial Service Provider with the
Financial Services Board.
It should also be registered with the National Credit Regulator. Beware of certain micro-lenders who charge severely high interest rates for instant cash loans.
Rather throw your spare Christmas cash into your bond and make do with more modest gifts – you’ll thank yourself on 1 January 2014.
“Another tip for next year: start your Christmas shopping in June. That way you can manage your monthly cash flow better, avoid the way retailers hike their prices in time for the holidays, and also stay away from borrowing money,” says Nobantu.
If you are already battling with debt, speak to your creditors about possibly restructuring your repayments. If you are in a debt crisis, you might want to consider entering a debt counselling process.
Debt counselling is a legal process that involves having your debt restructured so that you can pay household expenses and still be able to pay off debt at a reducedinstallment at the end of the month.
Contact an authorised debt counsellor such as Legal and Tax to find out more about how debt counselling can help you take control of your finances again.
For more information or help with managing your debt crisis call Legal and Tax on 0860 587 587 or email info@legalandtax.co.za
