Rein in festive spending to avoid Januworry - warns financial advisor

South Africans are being urged to strike a careful financial balance as the festive season collides with the reality of January expenses, amid high levels of household debt.

Certified financial advisor Paul Roelofse warns that many households face a long stretch before their next payday, after early December salary payments and rising year-end costs.

"It's kind of between the rock and the hard place where you're now stretching yourself through the period. You want to have a good time but also putting your handbrake on because around the corner, we've got to make provisions. Somewhere we have to find a balance, and that's the kind of dilemma we find ourselves in every time we come to this festive season."

He cautions against relying on easily available credit, particularly credit cards, saying aggressive festive-season promotions and lending offers - can deepen financial strain.

"Don't be enticed to say, well, let me borrow more now so that I can pay off my debt next month, and then I'll make a plan down the road. That's just not really being in control. I think the question really is to find your own limits and work and spend within them, and it sounds obvious... but there is a consequence if you don't keep control over this period."

Roelofse notes that around 75% of average household income in South Africa goes towards debt, leaving little room for overspending without consequences in the new year.

He says honest conversations about finances and disciplined spending could help households avoid starting the year in "damage control" and move closer to long-term financial stability.

"I think if you have that honest conversation, you probably find that everyone's going to put their hand up and say, I'm glad you mentioned that we're all in the same boat. You probably will have a better Christmas or a better festive season because that honesty's on the table, no expectations amongst each other, and let's just get on with sharing our time together. I think that's probably a more valuable commodity that you can give to each other than a physical one.

The key is really to move through the season, have a good time, but it doesn't have to come at a cost which you can't afford or have to pick up a little later on and get into that Januworry, as we call it..."

To listen to Paul Roelofse in conversation with 702's Gugs Mhlungu, click the audio below: