South Africans warned about Black November specials

As Black November specials get underway, the National Debt Counsellors (NDC) encourage South Africans to shop with the New Year in mind, so November bargains still feel like bargains when repayments meet January’s school fees and debit orders.

Black November extends traditional Black Friday sales into a month-long promotion, with retailers offering major discounts throughout November instead of limiting deals to a single day or weekend.

René Moonsamy, Director at the NDC, noted that this year’s Black Friday, 27 November, falls on households already paying more for credit.

Households already under pressure

South African Households are already under pressure as the Reserve Bank has raised interest rates twice this year, taking the prime lending rate to 10.75% in September, and its final rate decision of the year falls on 19 November, eight days before Black Friday.

Moonsamy cautions South Africans not to overburden themselves with debt and to spend only what they can afford.

“Before making a purchase, consumers should consider which future salary will pay for it, and what that salary already needs to cover.

“A month of promotions creates opportunities to spend repeatedly. Someone may stay within their limit on each individual purchase, but exceed what they can comfortably afford across the month.”

Reality of spending on Black November

Moonsamy said people often have two layers of debt: the credit used to make purchases, and further borrowing to cover everyday expenses once repayments begin.

“Take a household with R800 left each month after essentials and existing debt. Over Black Friday, it buys a discounted television on its store account and gifts on an interest-free plan, and by December the new repayments come to R1 500.

“A loan taken out in January to cover the gap leaves it R300 short every month by February. The discount was real, but the household could not accommodate the combined commitments.”

Is buying on credit worth it?

Moonsamy highlights that even if something is on sale, buying on credit can sometimes cost more than the original price.

“An item reduced from R5 000 to R4 000 can end up costing R5 400 once it is paid off in instalments with interest, fees and credit insurance, which is R400 more than its original cash price.

“Compare the total amount you will repay with the genuine cash price before the sale. If the extra borrowing costs exceed the discount, the saving has disappeared.”

Tips to shop without creating new debt

1. Decide what you need before you browse: Make a specific list and record current prices, comparing the same model, size or quantity across retailers, including delivery charges, so that advertised discounts can be checked against a genuine alternative.

2. Set aside the money before spending it: Establish one budget for the whole promotional period using money available after essential expenses and existing commitments. Pay from that allocation using cash or a debit card. Keep funds needed for December and January separate.

3. Check the purchase against the plan: Before paying, confirm that the item is on the list, represents a real saving and fits within the money remaining. If it requires a new credit account, a higher limit or borrowing for essentials afterwards, reconsider the purchase.

4. Put every instalment on one calendar: Four commitments of R300 become R1 200 when they fall due in the same month, and some plans collect fortnightly so that several deductions may land before the next payday. Interest-free plans can also attract charges if a payment is missed.

5. Think twice about festive credit offers: A higher limit, a new store card or a pre-approved loan increases access to credit, not the income available to repay it. A promotional deadline should not drive a commitment that may last months or years, and consumers can decline an offer even when they qualify.