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Johannesburg - South Africans must spend carefully over the festive season so they can afford to pay their 2011 expenses, the SA Savings Institute (Sasi) said on Tuesday.
"This festive season we are asking consumers to not get carried away with their spending - our theme 'spend wisely, new year ahead' should remind consumers of their responsibilities for 2011," Sasi chairperson Prem Govender said in Johannesburg.
She said massive debt discouraged saving.
"Debt also remains a deterrent to saving, with an average household spending 78.2% of their disposable income on debt repayments."
Over the festive season the resistance (to spending) is at an all-time low as consumers are bombarded by compelling advertising campaigns.
"In the process what gets forgotten is that there must come January, and with this comes not just the normal monthly expenditure, but annual recurring ones like school and university fees, uniforms and text books," she said.
The warning was backed by the National Credit Regulator, which said 8.59 million South Africans had impaired credit records by June 2010.
"This festive season we are asking consumers to not get carried away with their spending - our theme 'spend wisely, new year ahead' should remind consumers of their responsibilities for 2011," Sasi chairperson Prem Govender said in Johannesburg.
She said massive debt discouraged saving.
"Debt also remains a deterrent to saving, with an average household spending 78.2% of their disposable income on debt repayments."
Over the festive season the resistance (to spending) is at an all-time low as consumers are bombarded by compelling advertising campaigns.
"In the process what gets forgotten is that there must come January, and with this comes not just the normal monthly expenditure, but annual recurring ones like school and university fees, uniforms and text books," she said.
The warning was backed by the National Credit Regulator, which said 8.59 million South Africans had impaired credit records by June 2010.
