Advertise with

Spending 20% higher in December - FNB
Spending 20% higher in December - FNB

Spending 20% higher in December - FNB


Fin24 - Dec 18th, 09:25

Johannesburg - People banking at FNB spend about 20% more in December than the rest of the year, the bank has said. 

December minimum payments were mostly based on November balances that did not include holiday spending on things such as flights and accommodation, which were often brought on credit, said FNB credit card CEO Johan Maree.

Minimum January credit payments were generally between 20% and 40% higher than the average for the balance of the year.

Maree said using credit cards created a false sense of security that a person's finances were in order and there was room for extra spending.

"Although much of December spending contributes to a good holiday, the reality of payments falling short in January due to December spending can put you on a financial back foot as you enter the new year," he said.

In January, other expenses such school fees, uniforms, timeshare levies, annual subscription fees and increases on instalments had to be catered for.

Maree advised people to pay off as much as they could of their December accommodation and travelling costs throughout the year.

He said allocating a portion of the December bonus to existing debt, and to budget around the money left over would also prove beneficial.

He advised holiday-makers to buy groceries before going on holiday, as retailers marked products higher at this time of the year because of an influx of tourists.

"Inform your credit provider in time if you will not have the money to make your January instalments," said Maree.

"Living within your means will generally allow you to keep your 'debt house' in check.

"Although you are bound to spend more while on holiday, remain realistic about what levels of debt you are able to service," he said.From 

Related News

Fuel prices: buckle up for a tough 2014
18/12/2013 - 09:07
The fuel price is set for a steep hike at the beginning of next year, the Automobile Association of SA (AA) has said.

First interest rate hike predicted
22/11/2013 - 08:36
Johannesburg - The first interest rate hiking by the South African Reserve Bank (Sarb) will most likely only be in 2015, according to John Loos, FNB's household and property sector strategist.

No rate hike expected - poll
19/11/2013 - 08:22
Johannesburg - The South African Reserve Bank (Sarb) will probably keep interest rates steady when it ends its final policy meeting of the year this week and is likely to stay on hold until at least late 2014, a Reuters poll showed on Monday.

SA retail sales growth at 0.2%
14/11/2013 - 11:07
Johannesburg - Retail sales grew at a sluggish 0.2% in September compared with the same month last year, after expanding by a revised 3.2% in August, Statistics South Africa said on Wednesday.

Debt grows to N$80bn in July, Namibia
13/09/2013 - 10:22
The total Namibian debt (comprising domestic and foreign government, corporate and household debt) grew by 0,43% during July to N$80,98 billion, representing an annual growth rate of 9,93%, slightly lower than the growth recorded in June of 10,15%.