Goodwill is great but that bonus only goes so far

26 November 2015 - 02:38 By Nivashni Nair

'Tis the season for good food, luxury items and partying. But Father Christmas won't be footing the bill. Instead annual Christmas bonuses will be expected to cover South African shoppers' wish lists."At this time of year, people tend to spend their bonuses on non-essentials such as appliances, jewellery and furniture. The danger comes with the desire to splurge - we are human after all - on entertaining and luxury items we don't really need," said Sandile Xolo of financial services provider Ithala SOC Limited.Parents are always tempted to "go overboard" on children's Christmas gifts. "It is understandable that people want to spoil their families after a long, challenging year. However, one should also caution against falling prey to emotional buying," he said.Xolo said lavish spending could leave people broke, especially after the recent interest rate hike.Economist Vuledzani Ndou said households in debt were feeling the pressure of a weak economy."It would be wise to go easy on festive spending what with petrol price increases and rising food prices. The raised interest rates mean repayments are higher on loans, home loans or credit cards."The drought will definitely force food prices up," she said.Ndou advised people to use bonuses to pay down debt, buy staples such as maize in bulk and meat before prices go up, or save...

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