06 Dec Make joy, not debt!
With the Christmas season and holidays on us, it’s time for giving!
Except if ‘giving’ lands you in debt, taking on more debt to service your debt, or struggling to put food on the table and pay school fees.
Here are 5 ideas on how to make joy, not debt.
It comes down to budgeting.
1. BUDGET
Before taking personal loans and running up your credit cards to buy presents and treating yourself, do some budgeting.
Ask yourself these questions.
What will my 2025 payments be to service debt?
What impact will that have on my lifestyle and basic living needs?
Can I comfortably afford it, or will it cause some stress?
Do not get too excited about interest rates dropping – interest rates on unsecured (i.e. personal loans) and credit cards will be well over 20%.
2. THE CHRISTMAS MEAL & PRESENTS
This is an easy one, and also good for the waistline.
Do you need a turkey, chicken, gammon, roast beef tongue, leg of lamb and corned beef on the table?
Trifle and Christmas pudding?
Christmas is a time of family joy, not family overindulgence.
Regarding gifts, get something affordable for the children (so they also learn the value of money) but let the adults agree not to buy each other presents, or set a limit on what presents should cost.
3. ENTERTAINMENT
With debt levels as high as they are in South Africa, who still invites friends around and pays for everything?
It is encouraged to ask the friends to share the costs or bring and braai.
4. PAYMENTS
Do not be tempted to avoid paying contracted debt arrangements, and squirreling those “savings” towards your holiday.
Theres a lot of “savings” to “draw” on – personal loans, home loans, rates and taxes, vehicle finance, retail accounts, medical aid and insurance etc.
Do not go there!
Non-payment of some (e.g. medical aid, insurance) puts you at extreme risk, while also creating pressure in 2025 to catch up with your missed payments.
These are some practical and easy tips to enjoy December but avoid the January and February hangover. Make joy not debt!