Beware of feel-good factor after fuel price decrease
The festive season has kicked off with some much needed financial relief for holiday makers after the fuel price decrease and stable credit ratings news.
According to Debt Rescue the drop in the fuel and diesel prices, as well as the decision by S&P Global not to downgrade South Africa to 'junk status' is the best Christmas present that South Africans have had in years.
"If only one of the three credit ratings agencies had decided to downgrade the country’s debt, it would have been bad news," Neil Roets, CEO of Debt Rescue said.
Roets warned that more than half of the credit-active population were three months or more behind in their payments of store and credit cards as well as unsecured debt.
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"The trick now is not to let this feel-good factor open our purse strings too wide and incur debt that very few of us can handle on top of our existing debt load,' he added.
He also gave some guidelines when it comes to festvice season spending.
"Set up a budget for gifts for friends and family. Remember, it is the thought that counts and not necessarily the rand value. Don’t try and impress friends and family with expensive gifts that will only plunge you deeper into debt."