As stores begin to advertise their massive Black Friday deals for 23 November, the National Credit Regulator (NCR) is warning shoppers to be responsible on the day and not get themselves into debt.
The acting manager of education and communication at the regulator Jimmy Golele said, “If you did not budget for Black Friday this year, do not be tempted because buying on impulse may cause you to have a bad credit record.”
The regulator is urging consumers to prepare a budget and stick to it to avoid financial woes.
Many will be tempted to buy things on credit and Golele said, “Credit needs to be paid back with interest and fees. It costs more to pay by credit than to pay cash.”
He added that consumers needed to take credit that they could afford and pay accordingly as per their credit agreements.
Skipping payments would adversely affect consumers’ credit reports which would limit their future chances of accessing further credit when they really needed it.
He advised consumers to prioritise necessities such as their bond/rent, transport, groceries, school fees, insurance and others before splurging on Black Friday.
“It is really not wise to fund a Black Friday shopping spree by taking unnecessary debt because debt is costly and should be used for asset building.”
To help consumers avoid the urge to unnecessarily spend this Black Friday, Golele offered these helpful tips:
- Set a realistic budget of what you can afford to spend and stick to it
- Don’t spend what you don’t have, this means do not live beyond your means and don’t buy if you haven’t budgeted
- If an item is on sale and you buy it on credit, remember that interest and fees will push up the price. Therefore, cash is king
- Don’t be impulsive when you shop
- Have a shopping list to avoid buying unnecessary items. If you don’t need it now, chances are you may never need it. So, avoid wasting your time and hard earned money.
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