South African financial ombud urges consumers to check total cost on Black Friday
By the AFREEQUE newsroom, based on Sowetan
Illustrative image · Dany Kurniawan · Pexels · Licence PexelsAhead of Black Friday, South Africa’s National Financial Ombud recommends that consumers check the total cost of their purchases and assess their financial commitments before taking out credit. The institution also advises comparing prices over several months to ensure a good deal, according to Sowetan.
Ahead of Black Friday, Nerosha Maseti, head of banking and credit activities at South Africa’s National Financial Ombud, is calling on consumers to compare the total cost of a purchase on credit rather than focusing only on the discount rate. She particularly recommends checking the total amount to be repaid, interest, fees and any insurance.
To illustrate the risk, Maseti cites the case of a product advertised at 6,000 rand and financed over 24 months at 350 rand per month: the consumer would pay 8,400 rand in total, or 2,400 rand or 40% more than the advertised price. She clarifies that this is an illustrative example and not an actual credit offer.
The National Financial Ombud also advises tracking the prices of sought-after products over several months to determine whether a promotion is genuinely a good deal. Maseti warns against accumulating several instalments, which can put lasting pressure on household budgets after the Black Friday shopping period.
