GIFT NDOLWANE
JOHANNESBURG – CONSUMERS have been urged to spend wisely during the festive period and plan for the New Year to avoid falling into the debt trap.
They have been dissuaded from defaulting on monthly payments for necessities like funeral insurance.
Lee Bromfield, Chief Executive Officer of FNB Life, says many consumers get their final pay checks for the year by mid December, soon after being paid in November.
They then tend to overlook the fact that their salaries must sustain them until the next pay day in January and overspend.
In addition, this time of the year is marked with increased travel costs and other festive spending, which leads to unplanned financial strain on consumers.
“This results in consumers not being able to honour their financial obligations in January and pay for additional necessities such as school fees and university expenses,” says Bromfield.
He points out numerous instances where consumers intentionally withdraw funds from their bank accounts before debit orders are processed, in order to prioritise immediate expenses.
“Sadly, in the event of emergencies or unforeseen events, many families are often left exposed at this financially vulnerable time of the year, leaving them with no choice but to approach unscrupulous lenders like Mashonisas for financial assistance,” Bromfield adds.

– Guardian