Don’t break the bank this festive season, warns credit regulator
Consumers are strongly encouraged to draft a budget to ensure that they spend what they have, said the National Credit Regulator (NCR).
WITH the festive season picking up steam, and the anticipation of a 13th annual pay cheque, the National Credit Regulator (NCR) is urging consumers that while they may be looking forward to spoiling themselves and their loved ones – to do so responsibly.
“Many consumers complain that January is a long month, but like many other months, January also has 31 days. What makes it longer though, is how you spend your money during the festive season,” said acting manager for education and communication at the NCR, advocate Kedilatile Legodi.
Advocate Legodi reminded consumers that some will receive their December salaries earlier than usual while others will be receiving bonuses.
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“Often times, bonuses present a great temptation to buy more, however, consumers are strongly encouraged to draft a budget to ensure that they spend what they have. Consumers are further encouraged to get into a habit of allocating a portion of their budget to savings,” she said on Wednesday.
Reckless spending over this period without due consideration of January which is a few weeks away, may lead some consumers directly into the trap of unregistered credit providers informally referred to by many as “Abomashonisa”.
The NCR, which is responsible for the regulation of the South African credit industry, said desperation to borrow money in order to cope with January expenses can make consumers the target of unregistered credit providers.
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The NCR also had the following tips for the festive season:
Plan and draw up a list of your needs;
Set a realistic budget for what is on the list;
Prioritise your home loan, rent and school fees. Where possible, pay more;
Buy school uniforms and stationery now when you have money;
Start saving for next year’s projects such as holidays, renovations, studying, retail sales/specials and do not rely on credit for this;
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