DURBAN -
As the Black Friday madness ensues today, although many shoppers are looking forward to the sales, they should consider the downfall to Black Friday.
Consumers will be spending like crazy in order to scoop the best items on sale, however, they'll likely be spending well above their means. Economist, Dawie Roodt, said "we are is in a silly season and people will be spending money unnecessarily."
"People will run away with Black Friday and start spending money that they do not have," Roodt said.
People, in the end will be in debt if they have spend money that they do not have. A number of stores will allow customers to buy items on credit, this despite customers not being in a position to pay their installment.
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Neil Roets, CEO of Debt Counselling spoke to Business Tech about the nature of South-Africans debt. He said that Black Friday promised deals that would tempt people to spend money that they do not have.
Roodt echoed the same sentiments saying that people will be looking into accumulating debt if they go ahead and spend money crazily.
Roodt also said that Black Friday is just starting in South Africa but will continue to grow in popularity as the years go by. If people start getting into debt now, chances are that they may accumulate debt in the next couple years are higher.
As inflation rates fluctuate, consumers who spend all their money recklessly during this season will struggle to cope within the changing economy.
- BUSINESS REPORT ONLINE