“Buying on credit in Black Friday sales defeats the purpose”

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The National Credit Regulator says it defeats the purpose if consumers use credit to score bargains during this coming Black Friday.

Its latest quarterly report shows that the number of consumers in good standing has decreased and the number of those with an impaired credit record has increased due to high inflation and the state of the economy. 

The majority of consumers who spoke to the SABC News said they would snub Black Friday as their finances are not up to par. 

Black Friday has traditionally been observed on Thanksgiving Day in the United States of America. It’s a marketing strategy used by retailers to move volume sales and old stock by drastically reducing prices. 

It was introduced in South Africa in 2014 by one of the big retail groups and has become one of the busiest days on the retail calendar.

It’s not yet clear whether people will flock to the shops this year due to high inflation.

National Credit Regulator Jimmy Golele says, “Given the current economic circumstances, the high fuel costs, the high prices of almost everything, and the lacklustre increase consumers have been getting over the years, it remains a big question whether people will flock to the malls. However, given that people have been having a tough year, it is still anticipated that they might get that one thing that they have been yearning for in the latter part of the year in the bargains that will be offered by the stores.”

The NCR has urged consumers to shop smart and be safe during their Black Friday shopping.

“If you’re going to use credit to buy stuff, it defeats the purpose. The draw card for Black Friday is the discounts that are offered by the stores, however, if you use credit, it defeats the purpose. We remind consumers to remain credit-savvy, spend wisely, and borrow wisely,” adds Golele.

One of the top retailers claimed to have served more than one million people on Black Friday in 2015. In light of the current economic conditions, it’s unlikely to be surpassed this year.

VIDEO | Black Friday scams to watch out for:

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