Consumers that have borrowed money will be hit hard by the latest announcement from the South African Reserve Bank (Sarb) that it will hike rates by 25 basis points believes Ian Wason CEO of DebtBusters, South Africa’s largest debt counsellor. This is the first time that the SARB has increased the repo rate since hiking it by 25 basis points in July 2014.
27 November 2012
The festive season is nearly upon us – now is the time to tighten the purse strings and spend wisely.
It is easy to over-spend on gifts for friends and family therefore getting yourself into debt or even worse – increasing your existing debt.
There is increasing concern about consumers not saving which in turn compromises South Africa’s long-term savings and investment. The average lifespan of a South African continues to increase and this means many consumers will have to survive living costs when in retirement and often the government’s pension will not be enough. It is therefore essential you try and start now!
Ways to control your spending over the festive season are:
Make lists of who you want to purchase a gift for and keep to a budget for each person. Rather than spend excessively rather buy a smaller gift – it is after all the thought that counts!
Host one Christmas dinner instead of two or three – invite a group of friends and family over at the same time and bulk buy the food you need. This is always a cheaper option and it also saves you time instead of hosting a few evenings.
You could ask guests to bring a side dish along with them instead of having to make every dish yourself, or delegate a course to guests.
Put aside a little cash each month for your Christmas purchases and the dent won’t be as noticeable in your wallet!
For further advice please contact DebtBusters on 0869 99 06 06 or visit our website www.debtbusters.co.za.