How not to let Black Friday lead to Blacklisting

They are urging consumers to make smart decisions and to be responsible spenders.

Shoppers are advised to draw up lists of 'needs' and 'wants' and to stick to the budget they have allocated for themselves. 

Acting Manager of Education and Communication at the National Credit Regulator (NCR) Adv. Kedilatile Legodi says: “If you did not plan and budget for Black Friday, you are cautioned not to use credit. This is because you will not be saving as credit costs more.” 

“Although Black Friday may indeed be providing consumers with an opportunity to buy goods on special and discounted prices, consumers still need to make use of this opportunity in a wise and responsible manner”, adds Legodi.

Here are some tips that Legodi offers to consumers for Black Friday:

- Plan and draw up a list of what you need. 

- Set a realistic budget of what you can afford to spend and stick to it. 

- Check the items and prices before Black Friday to do a comparison on the prices and to ensure that you are getting a better deal.

- Should you decide to buy, stick to what is on the list. 

- If buying on credit, consider the related costs, you may not be saving. 

- If buying on credit, consider your ability to repay the debt, you may be signing up for financial troubles. 

- Remember, cash is king. Shoppers are urged to draw cash to avoid bank charges. 

- Remember, not everything is really a deal, some items may drop even further closer to Christmas. 

- Avoid buying food on credit. 

- Do not forget to conduct a financial health check and get a free copy of your credit report from registered credit bureaus on the NCR’s website: www.ncr.org.za.

Susan Steward from Budget Insurance said: "Before you decide to go big this Black Friday, it’s important to make sure you’ve made provision for all the things you need to pay for before you blow your budget on all the things you want. Don’t feel pressured to take advantage of every deal you see. Lack of control can not only result in you buying things you don’t need, but could easily land you in debt over the festive season.” 

 Steward also provides tips to shoppers: 

- Budget beforehand: Setting a budget will help you to guide and limit your spending. If you’re planning to buy gifts, budget per person so that you know exactly what you can afford to spend on each of them.

- Compare prices: During the year’s biggest promotional event, you may assume you’re getting the best prices but this isn’t always the case. So to avoid getting duped, do your research before making your purchase. 

- Shop smart with your smartphone: Download money saving and budgeting apps like Spending Tracker, which allows you to set your budget, log your transactions, and track your spending. 

- Give those wish lists a reality check: Manage your kids’ expectations when it comes to Christmas gifts. Many parents find themselves dipping into their savings after overspending on their kids’ gifts.  

- Plan what gifts you are going to buy and shop with a purpose. Don’t wonder around the shopping centre aimlessly because you will end-up buying items you didn’t plan for and over-spend.

- An expensive month is around the corner, keep in mind that the month when many of us have the least to spare also happens to be a very expensive one, especially for parents who need to pay for school uniforms and school fees. 

“Remember that a day of over-indulgence can wreak havoc on your bank account and land you in serious debt if you are not careful. That’s no way to start the festive season or 2020,” concludes Steward.

Adapted from press releases