Don’t let unwise December spending result in ‘Januworry’

Legodi cautioned against the services of loan sharks in January

MBOMBELA – Black Friday has come and gone, and consumers who were on the prowl for bargains face the prospect of a long January.

The National Credit Regulator’s (NCR) acting manager of education and communication, Adv Kedilatile Legodi, warned against unwise spending over the festive season. Her warnings come in the wake of a successful Black Friday weekend.

Riverside Mall marketing manager, Beate Dednam described last week as hugely successful for retailers across the country.

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“This year’s Black Friday was no exception. The mall was abuzz and there was a steady flow of consumers throughout
the Black Friday weekend.

“Trolleys were filled with a variety of products from our retailers and we believe our tenants benefited from the Black Friday trade,” said Dednam.

It is against this background that Legodi reminded consumers that December salaries essentially have to go towards settling school fees, uniform, food, transport and other expenses.

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“Failure to consider January expenses before spending during the festive season will indeed make January feel longer
and financially stressful,” she said. She further cautioned against the services of loan sharks in January.

“Desperation to borrow money in order to cope with January expenses will make you a target for unregistered credit providers who would usually advertise using phrases such as ‘Blacklisted consumers welcome’ and
‘cheap credit’, and often require you to pay a fee before they pay out the allegedly approved loan.”

Unregistered credit providers’ interest rates are excessive and their fees do not comply with the National Credit Act. This, coupled with other illegal practices such as holding on to the borrower’s ID, bank cards (including pin numbers) and SASSA cards, is on contravention of the Act.

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“Consumers are advised to only use NCR registered credit providers and report those that retain their instruments,
such as bank cards, to the NCR. Spending wisely during the festive season will alleviate the need for consumers to borrow money in January,” Legodi concluded.