This is scary news for a country with a depressed economy and people with already high levels of debt.
FIGURES released this week by auditors PwC, in partnership with Opinium Research, ahead of Black Friday today and Cyber Monday, indicate that South Africans are planning to spend 36% more this year during the annual shopping fest than in 2018.
In rand terms, this translates to an expected average of R3812 per consumer over this period.
The research also said that 85% of South Africans were planning to buy something this year, or would consider buying something if they found an attractive deal. And, according to FNB, South Africans are expected to spend close to R3billion on Black Friday/Cyber Monday, based on information collected last year.
Much of this will be on credit.
This is scary news for a country with a depressed economy and people with already high levels of debt.
Credit agency TransUnion said that consumer demand for credit remained high, with outstanding balances increasing across all major categories compared to last year.
The National Credit Regulator’s Ngoako Mabeba says there are 25 million active credit consumers in South Africa, with 10.23 million (40%) behind on their payments.
Keep this in mind as you set out for the malls or log on for online shopping today. Experts say that although there are undoubtedly good deals to be found on Black Friday, rational decision-making abilities are also at their weakest on this day.
Carla Oberholzer of DebtSafe warns that spending beyond your means can lead to severe debt. “If you don’t need to buy an item at full price, you don’t need to buy it on a sale,” she says.
Think hard about what you are buying: Is it a need or a want?
Avoid impulse purchases at all costs, and instead take advantage of Black Friday by stocking up on the less exciting but far more essential items, like toilet paper, non-perishable foods and school uniforms and stationery – if these are available.
It also helps to do a bit of research to ensure that an advertised discount is, in fact, a discount.
