Many have already made a list, whether it is on a piece of paper or in their minds, of what they want to buy this Black Friday, but not all of them have added a column showing where the money will come from.
As Black Friday and the festive season approach, South Africans are preparing for a time of celebration, generosity and heightened spending. While the excitement of deals and holidays is contagious, it is also a time when many consumers are caught in the trap of accumulating debt that lingers well into the new year, Patricia Temba, executive head of FNB Retail Collections, says.
“When reality sets in after a heightened period of shopping and overspending it can feel like a financial hangover. When the excitement of the season wears off, you might ask yourself how you managed to spend so much money, followed by feelings of guilt, self-blame and even isolation brought on by the shame of more debt.”
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Be careful how you spend on Black Friday
Temba emphasises that while these feelings are normal, they should be used as a springboard for action. “It is important to move to a space of self-empathy and, more importantly, take corrective measures to regain control of your finances as fast as possible.”
Consumers must firstly understand the Black Friday debt trap, she says.
“The Black Friday and festive season debt trap refers to the financial risk consumers face when they overspend during sales events, often using credit in the form of store cards or buy-now-pay-later options and struggling to repay that debt later.”
She warns that retailers use urgency and emotional appeal to drive impulse buying and says many shoppers rely on credit without fully considering the long-term impact. The consequences often surface at the beginning of the following year, a time already burdened with expenses such as school fees, school uniforms, stationery, insurance renewals and other financial obligations, leading to what many call “Janu-worry.”
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Spike in missed payments after Black Friday
“That is when we typically see a spike in missed payments and maxed-out credit cards. People often overextend themselves and by January, the reality sets in. Our collections teams have noticed a growing trend of customers reaching out for help and asking for payment arrangements or advice on how to manage their debt.
“It is not just about overspending, but also about emotional spending and trying to give generously or keep up with expectations.” Banks understand that and that is why customers are encouraged to talk their banks early. The sooner they know, the more the bank can help with practical solutions that ease the pressure and support long-term financial wellness.
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Lethukuthula Ngcobo, integrated advice product manager at FNB, shares these actionable ways to enjoy the holiday season without compromising your financial health:
Set a realistic budget and stick to it
Ngcobo says it is of utmost importance that you plan ahead and set a realistic budget ahead of Black Friday and the festive season and stick to it throughout.
“Impulse buying is the enemy of financial wellness. That is why it is important to plan and avoid buying items that are not on your list. By sticking to what you actually need, you remain focused and stay away from purchases that can inflate your spend over this time.
“List all your expected expenses, including gifts, travel, food and entertainment and include a buffer for unexpected costs. This gives you a clear view of your financial landscape and helps you avoid financial shock in January.”
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Avoid credit-fuelled spending
“If you cannot afford to pay for it in cash, reconsider buying it. Buy now pay later options and credit cards may offer convenience but often they come with hidden costs and high interest rates.”
Ngcobo says while these options can seem budget-savvy in the moment, they often carry steep interest rates and paying later means that you end up spending much more than the original price. Paying with cash or debit cards forces you to live within your means and can even protect your credit score because you are not increasing your credit use ratio.
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Use loyalty rewards and discounts
Maximise your loyalty programme benefits. Many retailers also offer exclusive deals to members, which can help stretch your budget.
“Contrary to popular belief, prices can often surge during high-demand periods and rewards and discounts can help you offset these costs and reduce how much you spend overall.
Loyalty programmes offer points, cashback, or exclusive deals which can mean you get more for every rand spent. “Also, when you use loyalty rewards and discounts you can free up funds for other priorities. Consistent use of loyalty programmes can accumulate points or perks for future savings, making them a sustainable financial strategy,” Ngcobo says.
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Shop smart when you shop online
Compare prices from different retailers and be cautious of scams. Stick to trusted retailers and avoid clicking on suspicious links. Scammers often create fake websites or links to steal credit card details, banking information, or other personal data.
“Trusted retailers, on the other hand, have secure payment systems that reduce this risk. Similarly, trusted retailers offer clear return policies and support, while scam sites often disappear after taking your money.”
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Reach out to your creditors early
If you anticipate difficulty in meeting your financial obligations after the festive season, do not wait until the pressure mounts, Temba advises. “Not talking to your creditors or financial institution can, in fact, lead to penalties and default listings.
“Proactively contacting your bank or creditors can open up options such as tailored payment plans or financial advice. There is no shame in reaching out because we are here to offer solutions, not obstacles.”
Temba reminds consumers that the best deals this season is peace of mind. “And facing your financial reality head-on can mean the difference between drowning in debt due to credit-fuelled impulse buying and coming out stronger and ready to take on the next financial year.”
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