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News24
30-04-2025
- Business
- News24
5 tips to manage debt and finances after public holiday spending
Reality can hit like a ton of bricks after major spending during long weekends. List all upcoming expenses and create a budget to help you recover. There's no shame in asking for help from a financial professional. The recent public holidays have blessed South Africans with an abundance of long weekends. But from holiday and shopping trips to days and nights out on the town, we wouldn't be surprised if there's a wallet-sized hole burnt straight through your pocket. Reality can almost feel like a financial hangover after days of exorbitant spending. Patricia Temba, FNB's retail collections executive head, explains that 'When the excitement of the season wears off, you might ask yourself 'Why did I spend so much money?', followed by a flurry of physical symptoms such as self-blame, guilt and self-isolation brought on by the shame of your new-found financial situation of being further in debt.' While feelings of regret are normal, now's the time to practice some self-empathy and jump into regaining control of your spending. Here are expert tips to actively manage your debt and get control back of your finances: the season's impact on your finances During holiday periods, many often feel the pressure to spend on travel, buy gifts or host family, even when money is tight. That said, remember that it's also possible to find a way back to a more balanced financial situation. Patricia says, 'Creating memories that matter is normal and so is the financial cost that often comes with that. As a financial institution we understand that spending time with family is incredibly important, so we don't look at this from a judgmental point of view. In fact, we want to support our customers by walking them back as they rebuild their financial confidence.' 2. Assess your financial situation It's easy to ignore your finances – avoiding bank statements and unopened bills after the holidays. But facing reality head-on can be the difference between sinking in debt and getting back on track. 'List everything, including your debts, monthly obligations, and upcoming expenses,' says Lethukuthula Ngcobo, the product manager at FNB Integrated Advice. 'Realise that clarity is empowering. Seeing it all in front of you might seem scary at first, but it's equally important as it gives you a concrete lay of the land and helps to kick your brain into problem-solving mode.' 3. Prioritise and budget towards financial freedom What you want to avoid, now that the holiday high is over, is continuing to make bad decisions with your money. Financial stress doesn't just impact our wallets – it keeps us up at night, affects our mental health, and limits our choices. JJ van Wyk, a financial adviser from Momentum Financial Planning, says, 'Financial freedom isn't reserved for the rich – it's a right that all South Africans can and should work towards. And just like our country's struggle for political freedom, the journey to financial independence starts with awareness, discipline, and small, bold steps.' These steps include building a savings habit no matter how small, investing early and not being afraid to ask for help. 4. Steer clear of new debt After a big spending spree, relying on credit cards or loans may seem like a quick fix—but it can trap you in a cycle of debt. Staying financially disciplined is key to building lasting stability. Lethukuthula says, 'To help yourself pause all non-essential spending and steer clear of taking on any new unnecessary debt, ask yourself, 'Can I afford this?' or 'Am I willing to take on more debt to bring me more financial pressure in the long run?' Adding that tiny mindset shift can help you curb stress-induced emotional spending in the moment.' 5. Contact your creditors early Most people delay proactively reaching out to their creditors when they are struggling. But sitting around and just hoping things will improve is not the best approach. Lethukuthula also believes that because of the deeply psychological nature of money matters, many keep their financial issues to themselves out of fears of judgement or shame. 'If you're feeling overwhelmed, it's even more important to speak to your lender. You'll find that contacting your financial institution and explaining your situation will feel more like a relief than a confrontation. There's no shame in reaching out because we're here to offer solutions not obstacles.'
IOL News
30-04-2025
- Business
- IOL News
How to manage your finances effectively after Easter spending
Discover six practical strategies from financial experts to help you regain control of your finances and manage debt effectively after the Easter spending spree. The holiday season, especially Easter, often includes cherished family moments, travel plans, festive feasts, and occasional indulgences. According to data from FNB, South Africans tend to spend more during this period on shopping, flights, accommodation, home DIY projects, dining out, and apparel. However, after the celebrations, many grapple with the aftermath of overspending. "Reality (after a heightened period of shopping and spending) can feel like a financial hangover. When the excitement of the season wears off, you might ask yourself, 'Why did I spend so much money?' followed by a flurry of physical symptoms such as self-blame, guilt, and self-isolation brought on by the shame of your newfound financial situation of being further in debt," says Patricia Temba, FNB retail collections executive head. While feelings of regret are normal, it is crucial to move towards self-compassion and take corrective measures to regain financial control. Experts at FNB Integrated Advice and FNB Collections have shared tips to help individuals actively manage their finances and debt post-Easter. Acknowledge the season's impact on finances Holiday periods, like Easter, often come with social pressures to spend on travel, gifts, and hosting loved ones, even when finances are strained. However, it's always possible to return to a balanced financial state. "Creating memories that matter is normal, and so is the financial cost that often comes with that. As a financial institution, we understand that spending time with family is incredibly important, so we don't look at this from a judgmental point of view. In fact, we want to support our customers by walking them back as they rebuild their financial confidence," says Temba. Assess your financial situation Facing financial reality can be daunting, but doing so is key to overcoming debt. Avoid denial and confront your financial situation head-on. "List everything, including your debts, monthly obligations, and upcoming expenses," advises Lethukuthula Ngcobo, product manager at FNB Integrated Advice. "Realize that clarity is empowering. Seeing it all in front of you might seem scary at first, but it's equally important as it gives you a concrete lay of the land and helps to kick your brain into problem-solving mode." Prioritise and budget Post-holiday, it's critical to make wise financial decisions to prevent further debt. Budgeting can bring a sense of calm and control. "Plot out your essential expenses against your income," says Ngcobo. "Distinguishing between your needs and wants will help you prioritize critical items such as rent, utilities, groceries, and minimum debt repayments. Once those are covered, you can use your remaining income to pay down your higher-interest debt gradually." Steer clear of new debt It's tempting to rely on credit cards and personal loans to cover shortfalls after high spending periods. However, this can lead to a debt spiral that's tough to escape. "Financial discipline is critical as it will help you set the foundation for longer-term stability," says Temba. To avoid new debt, Ngcobo suggests asking yourself, "Can I afford this?" or "Am I willing to take on more debt to bring me more financial pressure in the long run?" These small mindset shifts can help curb emotional spending. Contact your creditors early Many people delay reaching out to creditors when facing financial challenges. This can lead to penalties and defaults. "Not talking to your creditor or financial institution can, in fact, lead to penalties and default listings. At FNB, we want to help you avoid this altogether—that's why we sincerely encourage you to reach out to us the moment you suspect that you might have trouble meeting your financial obligations," explains Temba. Ngcobo adds, "Feelings of shame and fear of judgment often prevent people from seeking help. If you're feeling overwhelmed, it's even more important to speak to your lender. You'll find that contacting your financial institution and explaining your situation will feel more like a relief than a confrontation." PERSONAL FINANCE
