5 Tips to Manage Credit Over the Festive Season

The festive season is on our doorstep and while most of us are looking forward to unwinding and switching off, the one thing that we cannot switch off from is managing our money efficiently. If anything, December and January are the two months in the year during which we need to give our finances extra thought and attention.

FNB shares simple tips to help you manage credit over the festive season:

1. Don’t splurge during the festive season
While it’s always tempting to spend during the festive season, it is important to stick to your budget to avoid overspending. Sticking to your budget will ensure that you are in control of your money to cover all your financial obligations.

2. Use your bonus wisely
If you will be receiving a bonus this year, consider using the extra available funds to pay off your most expensive debt (e.g. debt with a high-interest rate). This will reduce the amount of interest you pay and could shorten the loan term.

3. Switch your credit into one personal loan*
Debt can be overwhelming if you have multiple credit products from various providers. A helpful money management tip is to switch your qualifying* credit into one convenient personal loan. By doing so you will benefit from having fewer monthly repayments to keep track off and, depending on how you structure the personal loan, could free up money every month thanks to a reduced minimum monthly repayment. Reach out to your trusted financial services provider to discuss the right credit solution to suit your needs and remember to never borrow more than you need or more than you can repay.

4. Do not miss payments
Avoid missing your loan repayment as this can negatively impact your credit score and make it difficult for you to get credit when you need it in future. It is important to take time to fully understand your loan agreement and its terms and conditions. One of the ways in which you can better manage your money is by making sure you know what additional benefits your financial services provider offers you.

5. Consider a ‘payment holiday’ if necessary
Find out if your financial services provider offers ‘payment holidays’ as not having to pay a monthly loan instalment in January can go a long way in alleviating some of the financial pressures we tend to experience after the holiday season. At FNB we offer our Loans customers whose accounts are in good standing the benefit of taking a payment break in January. Make sure you understand how taking up an offer such as this will affect the rest of your repayments. By proactively making sure that you have a money management plan in place for your finances over the festive season you likely to start the new year on sound financial footing.

By Emma Mer, CEO of FNB Loans