In this DebtSafe article published by Johannesburg Times, Wikus Olivier warns consumer to spend less money over the holiday season. The Department of Energy recently announced a decrease in fuel price of all grades of petrol, the wholesale price of both grades of diesel, the maximum retail price of liquefied petroleum gas (LPG) and the prices of illuminating paraffin.
Wikus says consumers have to be aware that although petrol prices are decreasing, the South African economy is under heavy strain. In a survey done by the company earlier this year, the statistics show that 51% of the participating respondents were not able to meet their minimum debt repayment requirements. 13% of respondents indicated that they couldn’t make ANY payment after the December holidays.
He says consumers must consider every cent before spending. “Before spending money on travelling or expensive trips and gifts, make sure you don’t have large financial concerns in the beginning of the New Year,” he adds.
“It is easy to overspend and overlook a lot of costs when travelling. For an example, if you drive a petrol vehicle, do the calculations of what the petrol decrease really mean to your budget. If your car’s tank takes 60 litres of petrol, you will save an average of R20 per tank,” he comments. For some households this means having money to buy milk and bread, against having nothing.
He says that people should plan ahead and use the extra cash that will be saved towards purchasing gifts rather than using a credit card.
Wikus advises individuals to take every financial aspect into consideration to ensure not to run out of money while away during the holidays, and that they don’t return to a ‘higher mountain of debt’ – debt that is newly acquired or expensive to pay back.
For practical tips on saving money while travelling, read the full article.