Debt Rescue: Pick 'n Pay's move irresponsible
Pick 'n Pay has announced that customers will now be able to purchase groceries on credit.
Debt Rescue believes it's an irresponsible move on the part of the giant retailer.
CEO of the debt counselling company, Neil Roets, says consumers are already over-indebted.
"It's not a good idea. I think it's quite irresponsible. The reality is that people who have to finance their food are definitely in financial distress and they need financial help. The last thing they need is the opportunity to take out more debt," Roets explains.
However, only a select few will have the opportunity to buy food on credit.
Pick 'n Pay says it will use its Smart Shopper card programme to select shoppers who qualify to buy on credit.
The giant supermarket is the latest to join the likes of Woolworths in offering its customers the option of purchasing food on credit.
Roets iterates: "Pick 'n Pay will definitely get a lot more customers because of this, but I think it will also cause more customers to become over-indebted."
He says this could result in consumers defaulting on credit agreements.
"Your living expenses is something you have to pay immediately with your salary and then if you have money left, as in a disposable income, you can use that to obtain credit."