Spend less in December and be jolly in January! – DebtSafe

PRETORIA, South Africa - Nov. 17, 2015 - PRLog -- The holiday season is just around the corner and consumers are holding their breaths… 2015 has been a year filled with astounding increases in living expenses.

Wikus Olivier, Debt Management Expert at DebtSafe (http://www.debtsafe.co.za/) warns consumers to think twice about spending too much of their hard-earned money during the holiday season. "People are inclined to get carried away over the festive season and can quickly go overboard without a proper plan set in place," he says.

Be careful not to fall in the over-indebted trap during the December holidays because it has negative repercussions in January. According to a survey that the company ran during the first few months of 2015, 51% of the participants could not afford their debt repayments after overspending in December.

The average South African household spends 50% (Stats SA) of their budget on food and non-alcoholic beverages. Then, adding other living expenses, there isn’t much (or in many cases, any) money left for entertainment and gifts. (Technology accessories are expected to be the most popular items for the Christmas stocking.)

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

Olivier recommends the following tips to help individuals avoid overspending this holiday season:

Set a budget in place - Keep track of your money so that you know exactly how much you have available to spend.

Manage expectations – When you have set up your budget plan, explain to your family how you allocated money for expenses and gifts during the holidays. This will help you and them to avoid disappointment.

Start early – It is still not too late to purchase gifts or booking your holiday – prices will increase when the schools are closing for the year. BUT; next year, as soon as the holidays are over, start to be on the lookout for sales in shops, as clearance sales are general after the holidays. This will help you by not overspending in December.

Swear off credit cards – Don’t buy something if you can’t afford it in cash.

Lastly, Olivier says consumers must make good use of their bonuses. “Instead of spending your bonus over the holidays, use a percentage of that to settle small debts which will improve your cash flow. Save some of it to see you through the long month of ‘Janu-Worry’,” he concludes.