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Kasi Times

The document summarizes the results of a research study on how consumers in South Africa plan to spend their bonuses during the festive season. It finds that while some small business owners feel it is best to pay off debts, many government and private sector employees open new accounts expecting to pay them off with bonuses but often do not. When asked directly, many consumers admit they will spend bonuses on shopping, holidays, and parties rather than debts. The document encourages wisely using bonuses to pay debts first in order to avoid interest charges and maintain a healthy credit record.

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Andiswa Tinto
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24 views2 pages

Kasi Times

The document summarizes the results of a research study on how consumers in South Africa plan to spend their bonuses during the festive season. It finds that while some small business owners feel it is best to pay off debts, many government and private sector employees open new accounts expecting to pay them off with bonuses but often do not. When asked directly, many consumers admit they will spend bonuses on shopping, holidays, and parties rather than debts. The document encourages wisely using bonuses to pay debts first in order to avoid interest charges and maintain a healthy credit record.

Uploaded by

Andiswa Tinto
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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I did a research on few consumers across South Africa, including government, private Sector

employees and small business owners on how they would spend their bonuses during the festive
season and if they can use it wisely by paying off their debt first.

Small business owners from Cape Town believe that spending wisely and paying off their debt is
the great idea to avoid harassment from their suppliers, they also agree on putting more money
aside for investments. Most government and private sector employees tend to open more
accounts just before they get their bonuses and they often promise to settle those accounts
with their bonuses.

Sometimes this is not the case as most of the consumers don’t stick to their promises. Having
done the research some of the consumers were very honest, they disclosed that they will not
pay any accounts as Festive season is the time to buy, buy and buy. Shopping, holidays, picnics,
functions, beach and parties is what is happening during the Festive Season.

They admit that they will not be paying for any accounts except spending and having fun.
Females spend their money on clothes, makeup, spa treatments and hair they believe festive
season is time to look good and they worked hard throughout the year. Most parents will have
to spend their bonuses on buying clothing for their kids. Some will invest in their children’s
education.

Some believe that they will decide only when they receive their bonuses and others admit that
they only telling positive things that they will do to avoid my advice.

I’ve discovered that few will utilize their bonuses to deposit a new vehicle, but mostly will buy
new furniture.

USE YOUR BONUS WISELY … PAY YOUR DEBT FIRST

 Paying off your accounts will be the best option ever especially personal loans and credit
cards as these attract the highest interest. Do this to avoid phone calls from creditors
this festive season.
 Settle small balances first so that you can be able to close those accounts once paid up
to reduce you debt load. Avoid using the credit that’s available rather close completely..
 Stop opening new accounts (especially the ones that require the first installment to be
paid in the New Year).
 Bonus comes once in a while so draw up a proper budget, buy everything on cash and
stick to your budget and plans.
 Paying later means stressing later, but paying on cash means peace of mind.
 Set money aside for emergencies and / or unforeseen expenditures – January is the
worst month and avoid taking more loans.
 Deposit a portion into the household bond in order to shorten the period of repayment.
 Should you struggle with your budget, seek for professional help such as Debt
Counselors, Financial advisers or make arrangements with your bank.

HEALTHLY CREDIT RECORD

 If you default on your accounts it will be logged with the credit bureaus and you will
build a negative credit record. This will influence your credit provider’s decision to grant
you credit in future.
 Always check how much debt are you in by checking your credit report regularly.
Every consumer has the right to a free credit report each year.
 Always maintain a good credit record it is a factor in determining whether or not
you will qualify for credit and the final amount that will be granted.
 Bad credit record may also limit you in terms of getting a job, as they do credit &
criminal checks.
 Good credit means you can get assistance from the Credit Providers anytime
because their believe you always maintain your payments

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