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’s also a period where many fall into the trap of accumulating debt that lingers well into the new year.
The emotional cost of overspending
“Reality after a heightened period of shopping and overspending can feel like a financial hangover,” says Patricia Temba, executive head of FNB Retail Collections. “When the excitement of the season wears off, you might ask yourself, ‘How did I spend so much money?’ followed by feelings of guilt, self-blame, and even isolation brought on by the shame of being in further debt.”
Temba emphasises that, while these feelings are normal, they should be used as a springboard for action. “It’s 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.”
Understanding the Black Friday debt trap
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 in the following months.
Retailers use urgency and emotional appeal to drive impulse buying, and 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 that’s already burdened with school fees, uniforms, stationery, insurance renewals, and other financial obligations, leading to what many call “Januworry”.
“That’s 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.”
Temba adds: “It’s not just about overspending, it’s also about emotional spending and trying to give generously or keep up with expectations. At FNB, we understand that and that’s why we encourage customers to talk to us early. The sooner we know, the more we can help with practical solutions that ease the pressure and support long-term financial wellness.”
Here are actionable ways to enjoy the holiday season without compromising your financial health:
Set a realistic budget and stick to it
FNB integrated advice product manager Lethukuthula Ngcobo says it’s 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 purchases are the enemy of financial wellness. That’s why it’s important to plan and avoid buying items that aren’t on your list.” By sticking to what you actually need, you keep focused and stay away from purchases that can inflate your spend over this period.
“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.”
Avoid credit-fuelled spending
“If you can’t afford it in cash, reconsider buying it,” emphasises Ngcobo. “Buy-now-pay-later options and credit cards may offer convenience but often they come with hidden costs and high interest rates.”
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 with debit cards forces you to live within your means and can even protect your credit score because you’re not increasing your credit utilisation ratio.
Use loyalty rewards and discounts
Maximise your loyalty programme benefits. Many retailers 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 adds.
Shop smart 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.
Reach out to your creditors early
If you anticipate difficulty meeting your financial obligations after the festive season, don’t wait until the pressure mounts. Temba advises, “Not talking to your creditor or financial institution can, in fact, lead to penalties and default listings. At FNB, we want to help you avoid this altogether – that’s why we strongly encourage you to reach out to us the moment you suspect that you might have trouble meeting your financial obligations.”
Proactively contacting your bank or creditors can open up options such as tailored payment plans or financial advice. Temba adds, “There’s no shame in reaching out because we’re here to offer solutions, not obstacles.”
With a sound plan of action, South Africans can enjoy the holidays without the burden of debt. And, as Patricia Temba reminds us, “The best deal this season is peace of mind. And facing your financial reality head-on can mean the difference between drowning in debt because of credit-fuelled impulse buying and coming out stronger and ready to take on the next financial year.”