As we all look forward to the festive season, a new new survey shows a sobering picture of what this year’s festivities will really be like for the average South African family.
According to Debt Rescue, consumers have been trapped in a vicious price increase cycle for most of the year, with very little to celebrate as we all head towards year-end.
The company notes in a statement that “the accumulated impact of the latest repo rate hike, escalating electricity and food prices, and especially the latest petrol price increase, all serve to hit the final nail in the coffin of families who are buckling under tremendous financial pressure”.
The debt firm also adds that “there is no doubt that the latest petrol price hike has put paid to the plans of millions of South Africans who annually take their once-a-year trip to visit their families”.
NEW SURVEY
The results of Debt Rescue’s festive season survey, where over 2000 people were polled, saw 78% of respondents saying that the current cost of fuel influenced their household's plans to travel.
It should be noted that “61% of those surveyed stated that they don’t plan to travel at all over the festive period this year because they simply can’t afford to”.
“Only 5.6% of people polled stated that they will travel provisionally for a vacation”.
“Every year, millions of hard-working people across the country save their hard-earned money to be able to afford a trip to spend time with their families and close friends in December. One of the key purposes of the festive season is to share it with those you love. This year, many won’t be able to afford it”, CEO of Debt Rescue Neil Roets said.
What should also be highlighted is that according to Statistics South Africa inflation figures, there is a 17,1% year-on-year increase for transport. Moreover, Stats SA recorded a 12% year-on-year increase in food and non-alcoholic beverages.
Debt Rescue argues that these inflationary price increases disproportionately impact vulnerable South African households, with 81% unable to put enough food on their tables.
Roets says that “the latest survey results clearly show that people are feeling the inflationary pressure on their pockets at this time of year. A massive 77% of consumers are planning to spend less this festive season, and 76% stated that savage inflationary price increases have had a significant impact on their festive shopping budget this year. 26% of those polled said they will be seeking out promotions, coupons and special offers, while 24% will be switching to lower priced items”.
The company also notes that a sure sign of the daily battle of millions of struggling consumers is that South Africans are planning to give up luxuries like travel, gifts and entertainment to be able to put more food on the table.
ADVICE
“It is heartbreaking that, for many families, this simply means ensuring that they have enough to put a nutritional meal on the table to celebrate the special seasonal events like Christmas, Hanukkah and New Year,” says Roets.
Roets says: “The need for some relief from the economic and social hardships of the year will almost certainly lead to South Africans leaning heavily on their credit and store cards to be able to celebrate the festive season in one way or another”.
“My advice to those who find themselves in a debt trap is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” according to Roets.
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