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Think twice before shopping on credit this Black Friday, says Moeshfieka Botha

24 November 2021 12:14 PM
Tags:
Financial planning
Debt
Spending
Black Friday
credit
credit card
Black Friday deals

Breakfast host Refilwe Moloto chats to personal finance expert and columnist Moeshfieka Botha.
  • Personal finance expert Moeshfieka Botha has warned against reckless spending this Black Friday
  • She says going into debt for Black Friday deals is not a wise move

Copyright: Dean Drobot/123rf

Buying items on credit this Black Friday could end up costing you more in the long run, says personal finance expert Moeshfieka Botha.

Botha has urged consumers to first take careful stock of their finances before spending for Black Friday.

She says using credit for 'specials' or 'bargains' may come back to bite.

The debt specialist has made an example of how Black Friday credit can have long-term consequences.

According to Botha, taking a personal loan of R5,000 over 24 months with an interest rate of 27% adds up to a repayment of R10,800.

"We have to be really looking at what the real cost of a Black Friday special is", she warns.

Her advice to consumers who plan on splurging on deals? "Just acknowledge your financial situation" and create a budget. "Write it down and add it up. You must have a clear idea of where yo are for you to be able to go forward".

Research has shown that people are going to do Black Friday on credit. 60% of South Africans have actually reported that they will be going and looking for those specials and those bargains for Black Friday but they are going to be using credit. That has to beg the question: Is anybody then really saving on Black Friday specials?

Moeshfieka Botha, Columnist and personal finance expert

Black Friday last year showed us that people were using Black Friday specials to fill up their pantries more than anything else.

Moeshfieka Botha, Columnist and personal finance expert

Consumers have about 25% less income and 25% more debt than they had 5 years ago... It doesn't put the South African consumer in a very good space.

Moeshfieka Botha, Columnist and personal finance expert



24 November 2021 12:14 PM
Tags:
Financial planning
Debt
Spending
Black Friday
credit
credit card
Black Friday deals

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