The credit information amnesty implemented on 1 April 2014, has left many South African consumers confused about what the credit amnesty means for them.
27 May 2015
Going on holiday is exciting. However, visiting new places and spending quality time with family and friends abroad can be costly. Often, we tend to spend a little more than we intend when we go on holiday because we may never return to the destination. Below we have revealed 6 debt solutions to avoid post-holiday debt.
Plan your holiday in advance
Planning your holiday in advance can actually save you money. Often, booking travel arrangements will be cheaper if you make reservations months in advance. Booking closer to the time you want to depart for holiday can be more expensive because it is more likely that other holiday makers will be making use of the same arrangements which causes prices to increase.
Choose the holiday that best suits you and your wallet
You should consider the following:
- Self-catering would be a great option. Often, these places will be cheaper than expensive hotels.
- Go somewhere close by. Having a great holiday does not been you have to fly half way around the world. There are many holiday destinations on your doorstep at a fraction of the price.
- Travel in groups to save on accommodation and travelling costs. This is simple debt solution to reduce your expenses when you decide to go on holiday.
Always set up and stick to a holiday budget. Don’t overspend or purchase items which you cannot afford. Imagine that you are back at home. Ask yourself if you would purchase the same item if you were not on holiday. You will notice that most of the time you will feel the urge to purchase items just because you are on holiday and not because you need it.
Avoid using credit
Using credit can lead to you having major financial problems when you return from your holiday. It’s very easy to splurge when we on holiday as you are in a festive and relaxed mood. Using debt to make purchases whilst on holiday will only leave you paying more once you return. If you have overspent your budget, avoid using credit at all costs as you will not have money to pay off your credit card debt.
Open a savings account for your holiday
By opening a savings account, you will earn interest on the savings which can help towards your holiday costs. Make sure that you do not use this money for other luxuries and remain disciplined.
Pay off your short term-debt
Try and settle any outstanding accounts balances that you may have for example store accounts and personal loans. You would not want to end up in a situation where you spent all your money on holiday and do not have enough to repay your monthly debt repayments when you return.