December 2023
Black Friday and Cyber Monday have set the festive season ball rolling and while it is time for celebration and joy, unfortunately, some often indulge in extravagant, and impulsive spending. It is easy to get caught up in the exhilaration of the festive season that could lead to overspending, and only regret it in January, when bills start rolling in. The stark realisation of the need to eat, pay bills (rent/bond, school fees etc.) becomes a reality. #JanuaryMatters! Accordingly, with the correct decisions, including a few cautious spending decision and a dose of financial discipline during the festive season, consumers can still celebrate the festive season without breaking their banks and blowing their budgets, says Ms. Poppy Kweyama, Manager: Education and Communications at the National Credit Regulator (NCR).
Ultimately, the festive season is a time for celebrations and togetherness, but it should not lead to financial stress and over indebtedness in the new year. By planning their finances well, making wise spending and credit decisions, placing priority on debt repayment, and refraining from impulsive purchases, consumers can ensure that this festive season is not only joyous but also financially responsible. Using some of the NCR’s tips and tricks for smart budgeting and planning, consumers can create lasting memories without blowing their budgets, says Kweyama.
Kweyama further urges consumers not to blow their bonuses and December salaries while in a festive spending mood. The fact that some consumers receive their December salary earlier than usual and possibly a bonus as well, is not an excuse to over-spend. Consumers must remember that December is no different from all the other months. Consumers must continue to budget their December salaries as they do for all the other months. Bonuses must be used wisely to pay off debts and for savings. It is important for consumers to pay for necessities first before luxuries, and to also remember their debit orders.
The previous, consistent, upward swing of the interest rate throughout the first half of 2023 resulted in increased debt re-payment instalments, this, coupled with cost-of-living increases have placed consumers under severe financial pressure. The NCR urges consumers to plan and monitor their spending this festive and take heed of the following tips:
- List down the necessary festive spending
- Compile a festive budget and make shopping lists to manage your expenses
- Pay your accounts on time and in full
- Avoid using credit cards unnecessary
- Always remember that Cash is King – (if you don’t have cash for it, you don’t need it).
- Don’t spend money on a “soft” lavish lifestyle to impress others
- Do not replace presence with presents
- Compare prices between different retail stores
- Beware of scams if you decide to shop online
- Read and understand the terms and conditions
- Save money for January expenses
- Live within your means during festive season
ENDS
About The National Credit Regulator
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (NCA) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.
For more information contact:
Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Or
Winnie Rabathata
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za
