” This year, we want to warn and educate consumers to be moneywise and be different so that they can
enjoy a happy new year”, says Mpho Ramapala, Manager: Education & Communication at the National Credit Regulator.
She says the festive season is aptly named the “silly season” because of a spending frenzy that appears to afflict people over this period. History has shown us that bonuses present a great temptation to continue buying things that they didn’t plan for. “We strongly encourage people to stop, do a budget and plan their spending very carefully, especially over this period with a note that January is just around the corner with its
expenses.”
Should consumers find that they are battling to pay their debts, Ramapala advises such consumers to contact their credit providers to negotiate lower repayments or to contact a debt counsellor for assistance. Debt counselling is meant for over-indebted consumers and it is not a free service, there are fees to be paid.
Tips from Ramapala:
1. Do a budget for the festive season and include all debt, rent, electricity, water,
insurance, transport, gifts, entertainment etc;
2. Read and understand your pre-agreement statement and quotation – if they
offer you credit life insurance, seek clarity on what it actually covers;
3. Seek loans with NCR-registered credit providers only. You can identify such
credit providers 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. Do not leave your identity documents, bank cards / pins and SASSA cards with
credit providers when applying for credit. This is a criminal offence. Report cases
where your bank / SASSA cards and identity documents were taken by credit
providers to your local police station;
5. When going shopping, have a shopping list to avoid buying unnecessary items.
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