Let us not get caught up in the ‘hype’ this festive season. The Gauteng Office of Consumer Affairs (GOCA) advises consumers to STAY ALERT, and to spend wisely and borrow wisely during this period. GOCA has put together a few tips to help you save this festive season.
SPEND WISELY TIPS:
* Set a budget for the festive season. * Buy only items/products you can afford. * Pay cash and avoid credit – this is because you pay twice on the initial saving on the sale price due to the high interest rates. * Shop smart and save – by shopping around and visiting price comparison websites, you ensure a good deal. * Remember the three Rs – you have the right to a repair, a replacement or a refund for defective and unsafe goods purchased online as well as those you bought in store. * Use your bonus/13th cheque to pay of your debts, credit cards or home loan –this will not only reduce the interest payable but also the term of the debt (e.g. paying extra into your home loan each month, or paying lump sums every time you have extra cash, will reduce the 20- year term). * You should make a provision for unforeseen circumstances by setting up an emergency fund. * Spend wisely this festive -remember most stores have sales at the beginning of the New Year.
BORROW WISELY TIPS:
* Draw up a budget and stick to it. * Borrow only when there is a need, not because someone is offering credit. * Borrow only for what you need – draw up a list of your needs and wants, and prioritise your needs. * Plan your repayments before borrowing money. * Before you sign any agreement, make sure you borrow from a registered credit provider or lender. * Shop around. Get a pre-agreement statement and quotation from credit providers before you take any credit as to compare costs (initiation fees, interests, credit insurance, other additional fees) and repayment terms offered by different credit providers. * Before any credit is granted, credit providers must conduct an affordability assessment for consumers as to avoid being over-indebted. As a consumer, you must be truthful about your income and expenses. * Read all the terms and conditions before signing any agreement and make sure that you understand them. Do not sign until you are sure. * Before you sign any credit agreement, find out all about the cost of credit and all the costs involved (initiation fees, interest, service fees, credit insurance, etc.). * Be careful of online lenders, some lenders are fake and are not registered with the National Credit Regulator. * Pay your debts on time.
Comments