Tips on how to deal with your festive spending
It can get difficult to manage money with the excitement associated with the festive season. Bonus spoke to a registered debt counsellor on how to curb your spending this holiday
![](https://images.caxton.co.za/wp-content/uploads/sites/68/2019/11/IMG_4016_28402.jpg)
POLOKWANE – It can get difficult to manage money with the excitement associated with the festive season.
Advocate Pat Molepo, a human rights activist and registered debt counsellor with the National Credit Regulator and CEO of the Community Advice and Law Centre cautioned consumers to spend their money wisely.
“Make a list whenever you go shopping to avoid buying unnecessary things. When you go shopping, eat at home first to avoid the temptation of buying food at restaurants as it is expensive to eat out and customers tend to buy things in a hurry when they are hungry,” he said.
He emphasised the importance of sticking to a budget. “Do not be tempted to buy what you cannot afford and do not rob Peter to pay Paul. Buy electricity on the first of the month as it is cheaper to do so,” he advised.
BONUS spoke to Molepo about debt counselling and what it entails.
“Debt counselling was introduced in South Africa in 2005 by Legislature after they noticed a high number of consumers’ assets been repossessed because of over indebtedness. The Legislature enacted the National Credit Act 34 of 2005 as a beacon of hope to rescue consumers who were over indebted because of credit providers who, when they advance credit to consumers, did not do affordability assessments and thus caused consumers to be over indebted because of their reckless lending mechanisms,” he explained.
What is debt counselling?
Debt counselling is accessible to any consumer with debt that they are unable to pay, irrespective of how much you earn or the debt you have.
As per Section 86 of the National Credit Act, consumers have a right to debt counselling so that they can pay only what they can afford. Amendments have been made to the NCA to include debt relief to consumers who earn less than R7 500 per month.
“Consumers married in community of property can make a joint application for debt review. A credit agreement will be reckless if a credit provider grants credit to a consumer who is married in community of property without consent or signature of their spouse,” he added. The National Credit Act introduced debt counsellors who are recognised individuals registered with the National Credit Regulator who have locus standi and jurisdiction to place over indebted consumers under debt review.
A consumer in debt will contact the NCR or go to any registered debt counsellor who is registered with the NCR and the consumer will be placed under debt review by the said debt counsellor, he concluded.
![](https://images.caxton.co.za/wp-content/uploads/sites/68/2017/12/website-fooeter-2.jpg)