In this edition of Wealthwise Magazine we give some helpful tips to save for your holiday!
Wikus Olivier, Debt Management Expert at DebtSafe, advises consumers to refrain from paying holiday expenses with a credit card. Here is how.
The “silly season” is almost upon us and although this period is supposed to be joyous, many people stress about trying to give their families the perfect holiday. However, paying by credit only makes sense if people pay off their credit card bills quickly and in full – with cash already saved up. Otherwise, if credit card bills are not paid in full immediately after purchases were made, the consumer could be paying hundreds of rands extra in interest.
Saving up for a holiday and paying cash is the best option to establish and maintain healthy personal finances.
Determine the cost and set up a budget
People must start taking control of their holiday expenses by setting up a budget including all the expenditures such as fuel, clothes, car hire, travel tickets etc. Set money aside for daily expenditure and add it into the budget so that the budget is in control.
Reduce costs of the Holiday
Another savings tip is to reduce the cost of the holiday. There are many ways to have fun and it doesn’t have to break the bank.
Can a person under debt review go on holiday?
When a person enters the debt review process, they don’t have access to credit cards. Therefore, if someone is desperate for a holiday, they need to save cash and plan well. It is really important to set a budget. Remember to always add an extra 10% for unexpected expenses.