SAVING TIPS FOR THE FESTIVE SEASON 2015

Tuesday, November 24, 2015

The festive season only comes around once a year. It’s December, the family is finally on holiday and it’s a special time for everybody to get together and share gifts and memories. Unfortunately, many South Africans lose sight of their budgets over the festive season and inevitably end up overspending. In the panic to make sure they have enough money to buy the latest gadgets for their children or pay for an overseas trip, people may feel tempted to loan money from untrustworthy sources without investigating the pros and cons first, and could end up in financial trouble.

“Many people extend their credit over the festive season to make sure that they can afford a holiday, gifts and luxuries without thinking about the long-term financial implications and consequences,” says Derek Wilson, Head of Hippo.co.za, South Africa’s leading online insurance and financial services comparison website. “There are countless loan providers in South Africa who offer loans at high interest rates which often exceed the limit set by the National Credit Regulator (NCR)*. They charge high fees, are not considered legal creditors and as such do not act within the ambit of the National Credit Act.”

Before you consider applying for a loan this festive season, here are some handy tips to make your Rands go further:

  1. Get a loan from a registered provider. Ensure that you apply for a loan from a registered, reputable South African credit provider to avoid unnecessarily high interest rates.
  2. Budget, budget, budget. Go for affordability rather than desirability when it comes to gifts.
  3. Start saving early to spread the costs. Even if you just put R200 away every month for the duration of a year, you will have an extra R2 400 come next December with which to buy gifts.
  4. Start a festive cupboard. Every time you see an appropriate gift for one of your family members or friends at a discounted price during the course of the year, buy it and store it until the festive season comes.
  5. Stay at home for one year, go on holiday the next. If you opt to stay home over December, you are bound to save a chunk of change. Rather save up for an out-of-season getaway, or commit to going away every second December only.

“Whilst comparing from loan providers online, also check that you are not paying too much on other financial products such as insurance,” concludes Derek. “Compare quotes and benefits from a range of South African providers across financial products such as Travel Insurance, Medical Aid, Car Insurance, Household Insurance, Buildings Insurance, Life Insurance and more using a site like Hippo.co.za. Hippo.co.za also compares quotes from a host of reputable Personal Loan providers with more providers to be added soon. This means that you can compare loan repayment term options in a matter of minutes.”



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