PEOPLE are claiming that the recession is over, but it is unwise to start celebrating just yet.
The economy will be struggling for a long time before we feel any benefit.
Jimmy Golele, acting manager for education and communication at the National Credit Regulator (NCR), said the amount of outstanding debt in Mzansi is not a happy picture.
“We advise people to slow down their spending over this festive season and only spend what you can afford.”
If you have debt, spend whatever extra income you have to get rid of it or start special savings accounts. Stop buying now or you will have to face the New Year debt hangover.
Keep the New Year in mind when spending during the festive season, as the new year comes with its own expenses and costs such as school uniform, school registration fees, transport, food and many more.
Golele said: “According to the National Credit Act, each and every one who offers credit and charges interest must be registered with the NCR.
“Unregistered lenders will take your identity documents, bank and Sassa cards and withdraw your money immediately after you get paid. They will pay themselves first and leave you with change to get by for an entire month.”
Festive spending tips
- Draw a budget for the month and include all debt, rent, electricity, water, insurance, transport, gifts and entertainment.
- Write a shopping list before you go shopping so you do not buy unnecessary items.
- If you did not budget for a holiday earlier in the year, it might be too late to organise a holiday this year.
- Prioritise your bond or rent.
- Do not cancel any insurance before speaking to a financial adviser.
Start saving for next year’s projects that you would like to undertake, such as holidays, renovations, studies and sales.