Don't rack up black marks

OMBUD: SMART SHOPPERS HAVE PLAN, STAY SHARP ONLINE, KEEP BUDGETS ON LOCKDOWN

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Most of us have checked by now which discounts the shops are offering on items we want to buy for Christmas. But as South Africans gear up for Black Friday this Friday, the national financial ombud (NFO) urges consumers to think twice before swiping their way into a financial hangover.

The long-term consequences of overspending on credit, including high-interest debt and depleted savings, can undermine essential financial goals and lead to post-holiday hardship, said Nerosha Maseti, credit and banking division lead ombud at the NFO.

Digital fraud also tends to spike during the year-end holiday season. "Black Friday, known for massive sales, is a shopper's adrenaline rush. But beneath the buzz lies a financial minefield. Swipe-happy spending can spiral into credit card chaos and lurking digital scams are ready to pounce.

"To truly win the day, smart shoppers arm themselves with a plan, stay sharp online and keep their budgets on lockdown. Impulsive spending can lead to unmanageable debt."

Maseti pointed out that the risks of impulsive buying and spending include high-interest credit card balances or short-term loans, depletion of savings intended for goals like home ownership and financial strain after the holiday season, when repayments become due. She advised consumers to set a budget and stick to it, prioritise long-term financial goals and keep credit balances low.