Marketing Spread recently featured an article about the upcoming holiday season and people who are spending too much money on entertainment and expensive gifts.
With more than 30 000 mine workers in the coal mining industry striking and prices of food and living costs increasing to such an extent that most South Africans can’t afford their current lifestyles, consumers are currently experiencing a rude wake-up call about their finances. Will retail figures in the normally peak festive season look as dismal as economists are predicting?
“South Africans are getting into more debt every month. Consumers must start now to plan for unforeseen circumstances and practice more discipline in their spending habits to avoid being over-indebted,” says Wikus Olivier, Debt Management Expert at DebtSafe, South Africa’s most trusted debt review company.
More than 56% of a group of consumers who participated in a spending and savings survey in the second quarter of this year indicated that they don’t have a savings plan in place. “This is concerning because when unforeseen circumstances occur, they take out loans at very high interest rates – producing even more debt,” Wikus continues.
He says although the general financial and economic situations look dismal, there is a way to help getting consumers out of debt.
The company recently launched OneWay, an all-in-one debt solution, which assists over-indebted consumers to manage their money better, keep track of their budget, and gives immediate cash flow relief. Once a person enters the debt review process, he or she is protected against credit providers. “All our clients are assigned to a Relationship Manager who looks after their accounts and who consolidates the client’s accounts into one affordable monthly instalment,” Olivier adds.
“OneWay also offers the most affordable Credit Linked Insurance in the industry that pays a person’s debt up to nine months after death, disability or retrenchment,” he says.