Hold the purse strings this Black Friday

WITH Black Friday inching closer, the National Credit Regulator (NCR) is urging consumers to put away their credit card and shop sensibly.

“If you did not plan and budget for ‘Black Friday’ you are cautioned not to use credit. This is because you will not be saving as credit costs more,” said the regulator’s acting manager for education and communication advocate Kedilatile Legodi.

Black Friday – which originates in the United States, is an informal name for the day following Thanksgiving Day, which has been regarded as the beginning of the Christmas shopping season – has in recent years started gaining traction in South Africa.

When one buys on credit, said Legodi, consumers will be liable for related costs such as interest, monthly service fees, once-off initiation fees, credit life insurance and others.

In other news: Call for action to prevent mismanagement of public purse

The NCR cautioned against making reckless spending decisions and encouraged consumers to be smart and responsible spenders this Black Friday.

The regulator advised consumers to first draw up a list, separating “needs” from “wants”, then look into the budget to check whether the available money is enough for further purchases.

The NCR which is responsible for the regulation of the South African credit industry — cautioned consumers to not take the value of planning and budgeting.

“Although Black Friday may indeed be providing consumers with an opportunity to buy goods on special and discounted prices, consumers still need to make use of this opportunity in a wise and responsible manner,” she said.

Buying on credit without a plan, highlighted the regulator may lead to an inability to repay the credit granted.

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