by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – CONSUMERS have been advised to curb spending this holiday in order to start the new year on a positive note.
African Bank warned of the repercussions of overspending during the period.
“On the back of an unprecedented year globally, due to the COVID-19 pandemic and lockdown, thousands of South Africans have experienced a year like no other – one which has been exceptionally tough on jobs, household income and the ability to repay debt, to name but a few,” said Neil Thompson,
Head of Product and Customer Value Proposition at African Bank.
The bank stated it was vital to think about repaying debt before spending money on Black Friday or Christmas shopping because failing to keep up with debt like loans, credit cards and motor financing would affect consumers’ credit score.
This could affect their life planning in the long term.
“It is understandable consumers want to get back to normal. However, if normality means overspending during the festive season and falling behind on debt repayments you could be setting yourself up for another bad year come January,” Thompson stated.
He said the important message out of this pandemic was that financial planning for the unforeseen was imperative.
“This means saving money, not overspending and thinking tomorrow is another day,” Thompson concluded.
– CAJ News