Faizel Patel, Radio Islam News – 10-12-2018

(Twitter: @FaizelPatel143)

The National Credit Regulator (NCR) has urged South Africans to be cautious of their spending during this festive season and only spend what they can afford.

The NCR says 2018 has been a difficult year for consumers with the petrol price hikes, VAT increases, interest rate increases and electricity increases making the cost of living very difficult for consumers.

It says the gross debtors book which represents what consumers owe in terms of mortgages, vehicle finance, store cards, credit cards and overdrafts amongst others has soared to about R1.80 trillion in June 2018.

Acting Manager for Education & Communication at the NCR Jimmy Golele says consumers should not overspend during the silly season.

“When spending during the festive season, consumers should think about the new year which will be upon us sooner that we can realise. The new year comes with its own expenses such as school uniform, school registration fees, transport costs, food costs and many other costs. If you failed to plan and spend wisely during the festive season, you will find yourself cash strapped in the new year and it will be difficult to get out.”

Golele has urged consumers to keep to their normal spending patterns and must not make drastic changes that may leave them over-indebted in the new year.