Now that the festive season is over and South Africans have spent every cent they could and could not spare, Januworry has arrived with its own expenses that have to be paid, such as children returning to school, which requires new uniforms and stationery. But what do you do if you did not make provision for Januworry? Borrow money and make more debt?
Whileborrowing money could be the only way out, the Credit Association of South Africa (CASA) is encouraging consumers to make careful, responsible credit decisions and encourages South Africans to borrow only from credit providers who are legally registered with the National Credit Regulator (NCR). “This time of year typically places additional strain on household budgets. Factors such as gifting, travel, social events, January ‘back-to-school’ costs and family commitments can tempt consumers to take on debt they cannot afford,” Leonie van Pletzen, CEO of CASA, says.
CASA is a South African association representing professional non-bank credit providers and enables credit providers to thrive and build a sustainable credit industry that supports economic growth and financial inclusion across South Africa. It is a member-based, non-profit association governed by an annual general meeting, an elected board, and specialised board committees. CASA is registered as a Section 21 Company.
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Van Pletzen warns that poor decisions consumers make over this period often lead to severe financial pressure early in the new year. “Credit can be a helpful tool, but only if used responsibly through registered providers who comply with the law and prioritise the protection of consumers.Informal or illegal lending continues to target vulnerable households over this period, making awareness and accountable decision-making more important than ever.” She warns that the end-of-year holiday season often places extra pressure on budgets. Van Pletzen shares these tips that serve as a guide to help protect financial well-being for consumers: #1: Set a realistic festive-season budget:Plan for all expected expenses, such as gifts, food, travel, entertainment, fuel, school fees and January essentials. Only spend what you can genuinely afford and not what you hope you will have.
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