How many South Africans currently have quick loans they regret taking? You’ll be surprised to find that more people than you think possible have taken loans that they simply should have avoided say FNB's Head of Consumer Education Program Eunice Sibiya. These loans can be seriously damaging to your financial health, especially over the long-term.
We're also in the middle of the mid-year festive season. There are a lot of public holidays, people going away on vacations and lots of family gatherings. This is definitely the time of the year that we are most tempted to take on unplanned debt in order to entertain family and friends.
Major events that require money come around every year. The secret is to plan. Choose what you will participate in and what you will sit out.— Eunice Sibiya, FNB Head of Consumer Education Program
These are preparatory steps you can take to relieve the financial pressure and temptation for taking on new debt
Speak to your visitors openly and honestly
When you have people coming to your home, plan so you don’t have to pay for everything. Well in advance, discuss your itinerary, anticipated costs and their contribution.
Spend within your means
Try to avoid expensive purchases you do not need. especially those you didn't plan for. If you can’t afford it, find an alternative more affordable entertainment option.
Don’t fall for peer pressure
So everyone else is going on the annual Easter weekend away and you can't afford it? Sit it out this time around. You don’t have to up show your friends; social pressure can have a serious impact on your financial situation. Stick to your financial goals
Set aside money
Save up money for the occasions you know are coming up. This will help take off the financial pressure when special occasions come up because you would have planned far ahead for them.
Small sacrifices can make a big difference and help you stay away from costly new debt. Always remind yourself of your long-term financial goals.— Eunice Sibiya, FNB Head of Consumer Education Program