Credit regulator cautions South Africans against January debt hangover

The National Credit Regulator (NCR) has urged South Africans to spend wisely and avoid a post-festive "financial hangover" come January next year.

With approximately 10 million South Africans already over-indebted, the organisation has warned against impulsive spending during the "silly season".

NCR spokesperson Winnie Rabathata said that although the South African Reserve Bank’s recent repo rate cut provides short-term relief, consumers must not misinterpret this as a licence to spend big.

"It is important to save so that in January you don't find yourself being overwhelmed with lots of debt. Saving is also a priority. Spend wisely. Do not let social pressures get you into debt, and always ensure that when you do borrow, you borrow wisely from registered credit providers."