Neil Roets, the chief executive of Debt Rescue, has warned that consumers must tread carefully during the Black Friday period to avoid falling into debt traps. “Black Friday has the potential to lure already struggling South Africans into deeper financial stress,” Roets said.
“My Debt Rescue, we understand that consumers are facing enormous pressure with sky-high living costs and unrelenting interest rate hikes. It’s crucial that people remain disciplined and avoid financial decisions that could worsen their situation.” He said that as the country prepares to enter the peak retail season, many consumers often see December as a “buy now, pay later” month, a cycle that can quickly become unmanageable.
“Every year we warn that overspending in December and then trying to catch up in January can quickly become a recipe for disaster,” said Roets. He explained that relying on credit to fund festive season purchases often leads to growing debt burdens well into the new year.
Debt Rescue’s executive head Jackie Mullins said impulse spending and misinformation remain the greatest risks. “Black Friday has become more of a psychological event. Shoppers feel the pressure to buy because it is perceived as a once-a-year opportunity, but that mindset can be dangerous,” she said.
Mullins said the Buy Now Pay Later (BNPL) trend has also contributed to increased consumer debt. “On the surface, BNPL seems affordable, but once you miss a payment, the fees and interest escalate very quickly.”