Our top tips
Manage your credit this festive season:
- Create a budget and stick to it. Ensure you have made allowances for all your planned spending over the festive season. If it is not within your budget then do not buy it.
- Prioritise your debt and pay back the accounts that are charging you higher interest first, no matter what the season is. Do this by paying the minimum instalments on the other accounts and allocating a greater amount to the higher interest rate account.
- Remember that one month of skipped payments can quickly start you off on a downward debt spiral.
- If you are fortunate enough to receive a Christmas bonus, use it to pay some of your debt off and look at setting aside a portion of this for January’s expenses. Don’t waste it on things you don’t need!
- Think carefully before you incur any further credit. Remember, borrowing money costs money (it isn’t ever free) and you must ensure you can afford to pay back the amount you want to borrow as well as the added interest, fees and costs.
- Try and supplement your income so that you will be able to pay back your debt faster.
- Keep a close eye on your credit report so as to monitor your borrowing and spending habits. By registering with mycreditcheck.co.za, consumers with valid South African ID numbers can easily stay up to date with their financial standing.
- Shop around for specials, many retailers are offering good buys over this period, and you should ensure you make the most of these deals, as your budget allows.
- Keep these tips in mind to help you meet your financial goals: spend wisely, save regularly, and invest prudently.