BUSINESS NEWS - The biggest one-day shopping event in the world is fast approaching. And in South Africa, consumer spending on Black Friday continues to increase year on year, with sales volumes having tipped the scale at over R2.5 billion in 2021.
Despite 2022 being one of SA consumers’ toughest years yet, experts predict that South Africans will turn to credit to support increased spending over this period.
This increase in spending could be seen as a way to make up for what they haven’t been able to purchase during the year.
But consumers need to think “beyond Black Friday” and manage their credit smartly to avoid falling into a debt trap ahead of the busy festive season.
I advise South Africans to not think of Black Friday as the day to make up for lost time, when it comes to spending.
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Instead, Black Friday should be thought of as a chance to take stock and make a financial plan that will allow you to see the end of the year through without incurring unnecessary debt.
According to the South African Reserve Bank, the most recent household debt-to-income ratio in South Africa stands at 75.1%.
The added pressures that the pandemic years placed on consumer pockets, compounded by the reverberant effects of an unstable geopolitical climate mean that for the majority of South Africans, over-spending on Black Friday is not a wise option.
We urge South Africans to practice purchasing and responsible borrowing as a component of personal financial wellness.
On the whole, South Africans need to become more aware of how the financial decisions they make today, will impact them in the months and years to come.
