Research study done by CreditSmart reveals that South Africans, aged between 18 and 65, will spend an average of R5 606 during the festive season, more than a third of the average salary.

With Black Friday and the festive season around the corner, Managing Director of CreditSmart, Wikus Olivier, says people must be aware of how much they earn, what their expenditure is, and what they plan to spend. This will help many to avoid spending beyond their means.

“What you do over the holidays will set you up financially in January, which will set you up financially for the whole of next year. You don’t want to start January on the back foot, financially speaking,” said Olivier.

Olivier explained that 40% of South Africa’s consumers have impaired credit records, which is something that can be avoided if consumers reduce unnecessary expenditure and stick to a tight budget.

Those that are already in debt can try getting assistance by looking at debt counselling, going through their bank statements to reduce unnecessary spending and reviewing their insurance policies.

“We are being bombarded every day with the bad economy, people not earning enough, there’s load-shedding, and we should tighten our belts. But, it starts with a mindset you need to resolve for yourself: You’ve got enough and you are going to try and get by with what you have.”

OFM News/Bambatha Giko