Will there be light on top of the Christmas tree this year? – DebtSafe

PRETORIA, South Africa - Oct. 13, 2015 - PRLog -- With more than 30 000 mine workers in the coal mining industry striking and prices of food and living costs increasing to such an extent that most South Africans can’t afford their current lifestyles, consumers are currently experiencing a rude wake-up call about their finances. Will retail figures in the normally peak festive season look as dismal as economists are predicting?

“South Africans are getting into more debt every month. Consumers must start now to plan for unforeseen circumstances and practice more discipline in their spending habits to avoid being over-indebted,” says Wikus Olivier, Debt Management Expert at DebtSafe (http://www.debtsafe.co.za/), South Africa’s most trusted debt review company.

More than 56% of a group of consumers who participated in a spending and savings survey in the second quarter of this year indicated that they don’t have a savings plan in place. “This is concerning because when unforeseen circumstances occur, they take out loans at very high interest rates – producing even more debt,” Olivier continues.

He says although the general financial and economic situations look dismal, there is a way to help getting consumers out of debt.

The company recently launched OneWay, an all-in-one debt solution, which assists over-indebted consumers to manage their money better, keep track of their budget, and gives immediate cash flow relief. Once a person enters the debt review process, he or she is protected against credit providers. “All our clients are assigned to a Relationship Manager who looks after their accounts and who consolidates the client’s accounts into one affordable monthly instalment,” Olivier adds.

“OneWay also offers the most affordable Credit Linked Insurance in the industry that pays a person’s debt up to nine months after death, disability or retrenchment,” he says.

Enjoy the December holidays with a limited budget

Olivier says unless consumers start to live within their budgets, the economy will take heavy strain. “Take control over your budget and save. It doesn’t matter how much you save because just to change your mind and be pro-active, you are on the right track towards living a debt-free life,” he continues.

When looking at the miners who are taking part in the strikes, getting no salaries, they will depend on credit and have to borrow money for basic necessities including food, clothing, travelling costs etc.

Although going away on holiday, buying lots of gifts and entertaining are exciting, it’s easy to overspend and put pressure on your budget. “Think twice before you spend… do you really need this item? Don’t get carried away over this ‘silly season’ splashing out on expensive gifts etc; but unless you do have a plan and a proper budget in place, stay home, have fun with your family and don’t fall deeper into the debt trap,” he says.

Don’t use your credit card if you can’t afford to do the repayment in cash.

“All of us look forward to the holiday season, wanting to make the most of the experience with our family and friends. However, doing so without planning ahead can leave us in more debt leading into the year ahead,” he adds.

“The whole aim of budgeting, checking your spending and saving money over the holidays is to give you a good financial foundation when the New Year starts. Nobody wants to start their new year in the red,” Olivier concludes.