Consumers often find themselves less guarded when making purchases during the festive season. In its seven years of existence, the office of the Credit Ombud has had many consumers knocking on its doors, looking for help after entering carelessly into credit agreements during the festive season.

“We find that this is the period when consumers will often purchase big ticket items such as vehicles, furniture and major electronic appliances,” says Credit Ombud Manie van Schalkwyk. ” It is mostly at this time when there are long queues and crowds in the shopping centres that consumers have their guard down and buy goods without thoroughly going through their contracts,’ adds van Schalkwyk.

This time of the year is traditionally a time when consumers will be inundated with special offers from retailers and credit providers.  With all the special offers and promotions at hand, consumers tend to get lost in all the merriment and promises of limited period offers.

According to the National Credit Regulator, the number of credit active consumers has increased to 18.84 million in the last quarter. The number of accounts held by South African consumers is currently totalling 65 million and this is bound to increase in the festive season given that people generally have access to extra funds during this time of the year.

The popular specials of buy now and pay later which are currently being promoted sound very convenient but, they could come at a high cost. “Consumers often focus on owning goods and getting what they think is a bargain and then have to pay for their purchases after the holiday season,” says van Schalkwyk.

To avoid accumulating excessive debt over the festive season, Van Schalkwyk says you should:

•-          Only purchase goods that you need and have thought about thoroughly, especially big ticket items

•-          Always stick to the budget which you had set yourself

•-          Be wary of going into stores and end up purchasing goods because of a special offer and not because you had intended to buy them

•-          Avoid getting into debt unnecessarily  – it is often better to save in order to purchase goods for cash instead of taking them on credit

•-          Shop around for the best price and don’t just settle for the first price you see

•-          Be on the lookout for the best ‘cost of credit’ which amounts to the sum of all possible charges you will have to pay

He advises consumers to take the time to thoroughly think about their purchases and assess whether in the long run they will be able to afford to make the repayments on their credit purchases.

The holiday season is a period to be dear to loved ones and to reward yourself for a year of hard work, but remember that in January provision needs to be made for back to school costs he adds.

Consumers can contact the Credit Ombud on 0861 66 28 37 or visit www.creditombud.org.za.