Festive season advice for consumers
As the festive season gets into full swing, the National Credit Regulator (NCR) is urging consumers to spend their hard earned money wisely.
“We are advising consumers to be cautious of their spending during this festive season and only spend what they can afford. Consumers should not overdo it,” said acting manager for education and communication at the NCR, Jimmy Golele.
Golele said 2018 has been a difficult year for consumers with increasing petrol price hikes, the VAT increase as well as interest rate and electricity price increases. As a result of this, the total outstanding gross debtors book for consumer credit was at R1.8 trillion as at the end of June.
“The New Year comes with its own expenses such as school uniform, school registration fees, transport costs, food costs and many other costs. If you failed to plan and spend wisely during the festive season, you will find yourself cash-strapped in the New Year and it will be difficult to get out,” said Golele.
Here are tips to assist consumers to spend wisely during the festive season:
– Draw a budget for the month and include all debt, rent, electricity, water, insurance, transport, gifts, entertainment, etc;
– When going shopping, have a shopping list to avoid buying unnecessary items;
– If you didn’t budget for a holiday earlier in the year, it might be too late and risky in terms of finances to go on holiday this year;
– Prioritise your home loan and rent;
-Before you cancel any insurance, speak to a financial advisor;
– If you borrow money, make sure you borrow only for what is strictly necessary, and ensure that you can afford the repayments;
– Start saving for next year’s projects that you would like to undertake such as holidays, renovations, studying, big sales, etc;
– If you are battling with your debts, contact a registered debt counsellor for assistance; and
– As much as possible, during the festive season keep to your normal spending patterns. Don’t make drastic changes that may leave you over-indebted in the New Year.
