Neelam Rahim | neelam@radioislam.co.za
3-minute read
27 November 2024 | 19:20 CAT

With Black Friday approaching, South Africans are advised to remain vigilant. (Image credit: Shutterstock)

On the eve of Black Friday, consumers are urged to exercise caution as purchase scams and reckless spending are expected to surge during this shopping frenzy. South African banks, including ABSA and Standard Bank, report a marked increase in fraudulent activities, with the Southern African Fraud Prevention Service noting a 32% rise in scams this year.

Speaking to Radio Islam International, Debt Rescues’ Annaline van der Poel highlights the high risk of scams during this period. “Scamsters exploit consumers’ desperation for bargains,” she says. With marketing messages flooding inboxes, the excitement often leads to impulsive purchases.

Van der Poel also warns against South Africa’s spiralling debt crisis. “Over 35% of credit-active consumers have accounts in arrears by three months or more,” she states, citing inflation and interest rate hikes as key contributors. While inflation has recently slowed, consumers are not reaping significant relief, as the cost of living remains steep.

Though Black Friday can offer genuine savings, Van der Poel stresses planning and vigilance. “Stick to your budget and avoid unnecessary credit purchases,” she advises. A recent survey revealed that many shoppers intend to focus on essentials like groceries and household goods, with some taking steps to verify prices and avoid misleading discounts.

As the festive season looms, Van der Poel emphasizes the importance of financial planning. “Many companies pay December salaries early, leaving a long stretch until the next payday. School fees, uniforms, and annual premium increases in January often push consumers into financial distress.”

Her advice? Prioritize essentials such as groceries and school expenses before indulging in festive splurges. While treating oneself after a challenging year is valid, moderation is key.

Debt Rescues urge South Africans to approach Black Friday cautiously, ensuring the hype doesn’t lead to unnecessary debt. “Moderation in expenditure is half of livelihood,” Van der Poel concludes.

Listen to the full interview on The Daily Round Up with Moulana Junaid Kharsany and Debt Rescues’ Annaline van der Poel here.