WATCH: Why make debt for lobola, weddings, tuition?

2017-07-23 21:00
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Cape Town - Consumers have been urged to avoid taking on debt for life events they can prepare for.

Things like lobola, university fees and weddings can be saved for in advance, head of marketing at Capitec Sbusiso Khumalo told Fin24.

"You can't make saving the last thing you do, it should be part of your planning."

Khumalo offers the following tips:

  • Make saving a part of your budget plan;
  • Honour your debt commitments first, and then save;
  • Don't cut down on retirement and education policies as a means of saving; and
  • Be honest in assessing what is a need and what is a want in your life.

He added that financial institutions and banks need to do a lot more work in terms of creating savings products that are appealing and accessible to South Africans, while also changing the behaviour and mindset of the client.

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