9 November 2026
The price tag says 40% off. The salesperson promises affordable monthly instalments. The deal is available for one day only. But while the temptation to buy may last just minutes, the debt could follow you for months – or even years.
As Black Friday approaches on 27 November, the National Financial Ombud (NFO) is warning South Africans not to let the excitement of bargain hunting cloud their financial judgement.
A discounted television, the latest smartphone or a new lounge suite may seem like a steal, but if bought on credit, the real cost can be far greater than the advertised price suggests.
With retailers combining eye-catching discounts with increasingly convenient credit options, consumers risk taking on multiple repayment commitments that steadily squeeze household budgets long after the Black Friday excitement has faded.
Nerosha Maseti, Banking and Credit Lead Ombud at the NFO, cautions that the true cost of buying on credit is not always obvious at the point of sale.
“A discount may reduce the purchase price, but financing that purchase creates an obligation that continues long after the sale has ended. Consumers should consider not only what they are saving today, but what they will ultimately repay and how that commitment will affect their ability to meet other financial responsibilities,” said Maseti.
When affordable instalments become expensive purchases
Black Friday deals often make credit seem deceptively affordable, with retailers promoting low monthly instalments alongside eye-catching discounts. But a manageable-looking repayment can mask the true cost of a purchase once interest, fees and other charges are factored in.
Consider a product advertised at R6,000 and financed over 24 months at R350 a month. By the time the final instalment is paid, the consumer would have parted with R8,400 – which is R2,400, or 40%, more than the advertised price.
While this is an illustrative example rather than an actual credit quotation, it highlights the importance of looking beyond the advertised price and monthly instalment to establish the total amount repayable, including any applicable interest, fees and insurance.
Maseti urges consumers to assess their existing financial commitments before signing up for additional credit.
“An instalment may appear affordable in isolation, but once combined with existing loans, household expenses and other obligations, the financial burden may be considerably greater than anticipated.”
She acknowledges that borrowing is not inherently irresponsible, particularly in an economy where many households depend on credit to cover essential needs. The key, however, is to borrow with a clear understanding of the full cost, the repayment terms and whether the additional commitment can be sustained without compromising other financial responsibilities.
Buy Now, Pay Later: another commitment on the household budget
The NFO also anticipates increased consumer interest in Buy Now, Pay Later (BNPL) arrangements during this year’s Black Friday promotions.
Although certain BNPL arrangements allow consumers to spread payments without interest, the convenience of deferred payments may encourage multiple purchases that collectively place pressure on household finances.
For example, four separate purchases requiring monthly repayments of R500 each would create a combined monthly obligation of R2,000.
“Consumers may regard smaller deferred payments as less significant than traditional loan instalments. However, regardless of how a purchase is financed, those payments must ultimately come from the same household income,” Maseti said.
The NFO cautions that BNPL obligations may reduce the income available to service existing credit agreements.
Credit approval is not a guarantee of affordability
The NFO reminds consumers that the National Credit Act 34 of 2005 requires credit providers to conduct appropriate affordability assessments before entering into qualifying credit agreements.
“A credit provider’s decision to approve an application should not replace the consumer’s own assessment of whether the repayments are sustainable,” Maseti explains.
“Responsible borrowing and responsible lending go hand in hand. Consumers must provide accurate financial information, while credit providers must comply with their statutory assessment obligations.”
When Black Friday purchases go wrong
Beyond affordability, the NFO is highlighting the difficulties consumers may encounter when goods purchased on credit are defective, not delivered or returned.
Consider a consumer who purchases a refrigerator on credit during a Black Friday promotion. Shortly after delivery, the appliance develops a serious fault and is returned to the retailer, but the monthly instalments continue because the financing arrangement has not been cancelled or adjusted. Thus, a consumer may face two related but legally distinct problems: a dispute concerning the quality of the goods and another concerning the credit used to finance the purchase.
“Consumers sometimes assume that returning a product automatically ends the related credit obligation. That is not necessarily the case. The position depends on the type of financing arrangement, the circumstances of the return and the applicable law,” says Maseti.
Under sections 55 and 56 of the Consumer Protection Act, consumers generally have remedies where goods fail to meet prescribed quality standards. Subject to the Act’s requirements and exceptions, defective goods may be returned within six months, with the consumer entitled to require repair, replacement or a refund.
However, where purchases are financed through separate credit facilities, a dispute concerning the goods does not necessarily terminate the credit agreement.
Consumers should promptly notify the credit provider, obtain written confirmation of refunds and establish how any adjustment will affect their outstanding balance.
The NFO encourages consumers to:
- Compare the total cost, not only the discount. Establish the full amount repayable, including any interest, fees and insurance payable.
- Set a realistic spending limit. Ensure purchases will not compromise essential household expenses.
- Add up all repayment commitments. Include existing credit agreements, store accounts and BNPL instalments when assessing affordability.
- Resist promotional pressure. A limited-time discount should not determine a long-term financial decision.
- Understand your credit agreement. Review repayment terms, charges, cancellation provisions and the consequences of default.
- Keep proof of purchases and returns. Retain agreements, receipts, repayment schedules and refund confirmations.
- Act promptly when disputes arise. Contact the relevant retailer and credit provider and verify that agreed refunds or adjustments are correctly reflected.
Where consumers can seek assistance
Consumers experiencing difficulties with participating non-bank credit providers should first attempt to resolve their complaints directly with those institutions.
Where matters remain unresolved, the NFO’s Banking and Credit Division may consider qualifying complaints involving disputed balances, incorrect account adjustments, interest and charges, credit bureau reporting and other aspects of credit agreement disputes and fraud.
Contact the NFO
National Financial Ombud Scheme South Africa
Tel: 0860 800 900
Email: [email protected]
Website: www.nfosa.co.za
