How to Use Credit Wisely This Black Friday; With Black Friday (29 November) and Cyber Monday (2 December) fast approaching, many South African consumers are gearing up to score the best deals. However, the allure of discounts can often lead to unplanned spending, especially when using credit. Whether you’re shopping online or in-store, it’s essential to understand your credit options and use them strategically to avoid financial pitfalls.
Credit Options: Pros, Cons, and Tips
Credit Cards: Convenient but Risky
Credit cards are a popular choice for their flexibility, allowing you to cover both small and large purchases. However, they come with potential downsides like high interest rates on unpaid balances and the risk of harming your credit score with missed payments.
Expert Tip: Only use your credit card if you’re confident about paying off the balance quickly. Aim to clear your spending by January to avoid starting the new year in debt.
Buy Now, Pay Later (BNPL): A No-Interest Alternative
BNPL services, such as PayJustNow, offer a great way to spread out payments interest-free. This option is ideal for purchases slightly outside your budget but manageable with smaller installments.
Key Advice:
- Select a BNPL provider that aligns with your salary cycle.
- Stay vigilant in December, as early salary payments may leave you short by month’s end, risking missed payments and credit score damage.
Revolving Credit Loans: For Essentials Only
Revolving credit loans provide ongoing access to funds but often come with variable interest rates. Use these loans sparingly and only for essential, planned big-ticket purchases.
Pro Tip: Monitor terms, conditions, and interest rates closely to avoid long-term financial strain.
Personal Loans: Predictable and Purpose-Driven
Personal loans are best for larger, planned expenses like education or home improvements. They offer predictable repayment terms and potentially lower interest rates than credit cards.
Advice from Experts: Only take out a personal loan if it aligns with long-term financial goals. Ensure the loan term doesn’t exceed the lifespan of the purchase.
Plan Ahead for Financial Success
Anticipate future expenses, like Christmas gifts or school supplies, to avoid overstretching your budget. Choosing interest-free or low-interest credit options and budgeting carefully can help maximize your cash flow while keeping your financial health intact.
The PayJustNow Advantage
For a stress-free shopping experience, explore PayJustNow’s deals platform, which connects consumers with trusted retailers and offers interest-free payment solutions. With smart credit use, you can make the most of Black Friday deals while starting 2025 on solid financial footing.
By following these tips, South African shoppers can enjoy the excitement of Black Friday without the worry of financial regrets.
