As the festive season nears, the temptation to overspend can lead to regret and lasting debt.
Image: Freepik
We are almost at the end of the year and burn-out starts to creep in for many South Africans which often coincides with the allure of Black Friday and festive season sales.
Ayanda Ndimande, business development manager, Sanlam Credit Solutions said that a combination of all these factors can lead to emotional spending and lasting debt.
According to Ndimande, the South African Depression and Anxiety Group estimates a third of all South Africans are burnt-out, while the Sanlam Benchmark Survey 2024 revealed that 80% of South Africans worry about their finances daily which contributes to year-end fatigue and financial stress.
“Year-end fatigue can make people seek retail therapy relief right as sales season ramps up. Dealing with stress through increased spending is not the answer," Ndimande said.
Counselling psychologist Sanam Naran said: “If we want to improve our financial confidence and overall wellbeing, we’ll do well to understand our emotional spending habits and consider the value of getting qualified professionals to support us."
Ndimande said that to navigating the holiday season, starts with an honest review of your affordability and and then putting a plan in place to stay within those lines.
The first step is to have an understanding of how much you earn, then creating a budget that takes into account your financial priorities, and only committing to spend what you can afford. Having structure and a plan takes the emotion out of spending decisions.
You should start by accessing your free credit score and report which will allow you to check your creditworthiness. Then set clear credit goals and boundaries so you can stay consistent with healthy credit habits and avoid temptation over the festive season.
If you are not sure why you are impulse-buying, don’t be afraid to get a professional in your corner like a financial advisor, a life coach, or a psychologist or counsellor can guide you in setting smart goals and suggest tactics to avoid spending habits.
IOL Business