NATIONAL NEWS - With the festive season picking up steam and the anticipation of a 13th annual paycheque, the National Credit Regulator (NCR) is urging consumers to spend responsibly.

Acting Manager for Education and Communication at the NCR, Advocate Kedilatile Legodi reminded consumers that some will receive their December salaries earlier than usual while others will be receiving bonuses. 

"Often bonuses present a great temptation to buy more, however, consumers are strongly encouraged to draft a budget to ensure that they spend what they have. Consumers are further encouraged to get into a habit of allocating a portion of their budget to savings," she said on Wednesday.

Legodi reminded consumers that the salary paid in December is the same income that has to cater for January expenses such as school fees and school uniforms.

The NCR, which is responsible for the regulation of the South African credit industry, said desperation to borrow money to cope with January expenses can make consumers the target of unregistered credit providers. 

These credit providers usually advertise their services using phrases such as "Blacklisted consumers welcome" and "cheap credit". They often also require a consumer to pay a fee before they pay out the alleged approved loan.

Excessive interest rates and fees that are not in line with the National Credit Act are also often charged. They also use unlawful tactics to collect on their debt such as retaining consumers' identity documents, bank cards / PINs, SASSA cards and others.

Consumers should remember that credit is expensive as it includes interest, monthly service fees, once-off initiation fees among others.

NCR's tips for the festive season

• Plan and draw up a list of your needs;
• Set a realistic budget for what is on the list;
• Prioritise your home loan, rent and school fees. Where possible, pay more;
• Buy school uniforms and stationery now when you have money;
• Start saving for next year's projects such as holidays, renovations, studying, retail sales / specials and do not rely on credit for this;
• If you are battling with your debts, contact a registered debt counsellor for assistance.

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