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sumers may find it more difficult to open credit accounts.

Have a festive budget. List and add together all your income

The purpose of the stricter rules related to the granting

and list all your expenses for December and January. Sub-

of credit is to curb reckless lending and prevent consumers

tract your expenses from your income and what is left over can be your budget for the festive season.

from obtaining credit which they can not afford. Lala Mohan says consumers may find the process of open-

Avoid ‘buyer’s remorse’. Make a list of items you want to

ing new accounts during this year's festive season more dif-

purchase before going to the stores to avoid compulsive

ficult than in the past, and they should be aware that certain

shopping.

documentation, as well as credit checks, will be required.

Eat at home. Before going out to the shops, eat at home

Another new regulation that came into effect on 11 No-

to avoid unnecessary spending on luxury food items on

vember 2016 relates to the requirement for all providers of

display or spending too much for the whole family to eat

credit to register with the National Credit Regulator (NCR).

at restaurants.

This means that any credit granted by an unregistered credit

Consumers are advised to take care to only do business with

Be creative with gifts. Instead of buying gifts, make them at home. This is one of the best ways of saving.

registered entities and report illegal activities to the NCR. Each year consumers spend thousands on items such as

Compare prices. Before you spend, compare prices between stores to get the best deals.

provider after this date will be unlawful and unenforceable.

Be wary of festive adverts. Don’t be misled by stores offering

gifts and other luxuries because they get carried away with

you ‘gift vouchers’ with purchases or when you open ac-

festive spending. With a little bit of extra cash from their bo-

counts as you might find yourself buying things you don’t

nuses, consumers get sucked into advertising and marketing

need and opening accounts unnecessarily.

deals such as “take two for the price of one” or “buy now, pay

Avoid end of season sales.

your first instalment next year”. These advertising campaigns

Only enter into credit agreements with registered lenders.

are designed to manipulate consumers into spending more over the festive season.

Helpful tips

Consumers can contact the office of the Credit Ombud for free assistance for any issues relating to credit agreements with non-bank credit providers such as the clothing and furniture retailers as well as micro-lenders, fraudulent list-

Heeding the following tips will help ensure that you still

ings, emolument attachment orders (garnishee orders) or

have some money in your bank account come January:

general complaints about their credit bureaux listings. The

Avoid new debt. If you have not saved for it, don’t take out

office can be contacted on 0861 66 28 37, on the website

debt for it. Make sure you can afford the goods before you

www.creditombud.org.za, by email at ombud@creditom-

purchase them.

bud.org.za or by sending an SMS to 44786.

Public Sector Manager • December 2016 / January 2017

83

PSM December/January Edition 2016/2017  

Public Sector Manager Aimed at all middle and senior managers in the Public Service and the Public Sector in general, Public Sector Manager...

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