money on non-essentials during the soccer tournament, a financial advisor said
Octagon director and debt counsellor Paul Slot said: “Gripped by
enthusiasm and zeal, too many ordinary South Africans are making financial
sacrifices to buy all kinds of non-essentials which they are going to rue over
the long term.”
Only a minority would have made a conscious effort to save to
afford items such as tickets, clothing and memorabilia.
Slot said: “By far, the majority will be indulging in this
once-in-a-lifetime event, and the consequences for normal instalment and debt
repayments, even home loan repayments, could be dire.”
Social spending, Slot said, was buying items not usually included
in the monthly budget: “Countless corporates are investing in the event,
providing tickets and all the accessories for employees, and these employees
will allocate much smaller sums to their own social spending as a result.
those who don’t benefit from corporate spending will be increasing their outlay
on social spending.”
Repercussions could be neglected monthly repayments, a heavy draw
on credit and an escalation of financial stress. This would impact negatively on
consumers’ productivity, relationships and even health.
Reckless or simply unwise spending was already commonplace among
Slot said: “Over eight million consumers already have impaired debt
repayment records and most are not in a position to repay the debt
The average consumer already used 47% of after-tax income to repay
debt which, paradoxically, drove consumers to get short-term credit – the most
expensive form of lending available.