The festive season is a time of celebration, giving, and shopping for the best deals of the year. From grocery savings to discounted tech and appliances, the opportunities to stretch your rand are plentiful. However, navigating festive deals requires a smart approach, particularly if you're using credit facilities.
By understanding how to use credit responsibly, you can make the most of these seasonal discounts without finding yourself in financial trouble come January. Here’s how to use credit positively to capitalise on festive deals.
- Use the Right Credit Facility
A credit facility like the RCS Store Card can be a powerful tool for festive shopping. Here’s why:
- Access to Exclusive Deals: RCS’ extensive shopping network can allow you to access potentially exclusive savings or promotions for RCS cardholders.
- Interest-Free Periods: RCS Credit Cards come with an interest-free repayment period, allowing you to pay off your purchases over time without additional costs.
- Flexible Repayment Terms: The ability to choose repayment terms that fit your budget ensures you stay in control of your finances.
Why This Matters
Using a retail card designed for shopping, such as the RCS Store Card, lets you unlock additional savings while managing your cash flow effectively.
- Plan Your Purchases
The key to smart festive shopping lies in preparation. Start by making a list of what you need versus what you want. Prioritise purchases that provide long-term value, such as:
- Groceries on Sale: Many retailers offer bulk discounts on pantry staples during the festive season. Stocking up on non-perishable items can save you money for months to come.
- Tech Upgrades: Discounts on electronics like smartphones, laptops, and TVs are common during this time. These upgrades can save you significantly compared to purchasing them later at full price.
- Home Appliances: If you’ve been planning to replace or upgrade an appliance, festive sales are the perfect time to do so without overspending.
Pro Tip
Use your RCS Store Card to spread out payments on large purchases. With manageable repayment options, you can enjoy the benefits of your upgrades without straining your budget.
- Stick to a Budget
One of the biggest risks of using credit during the festive season is overspending. Set a clear budget for your festive shopping and ensure that you do not exceed it – even if you suddenly stumble upon a desired item at a great price – remember, that’s why you’ve created a priority list.
How to Stay on Track
- Set Limits: Decide how much you’re willing to spend and monitor your limits after each purchase.
- Track Deals: Focus on deals that align with your needs, rather than being swayed by flashy advertisements.
- Avoid Impulse Purchases: If it’s not on your list and doesn’t fit your budget, skip it.
- Take Advantage of Rewards and Benefits
Many credit facilities, including RCS, offer additional perks that enhance your festive shopping experience.
Key Benefits
- Cash Back or Rewards: Check if your credit facility earns you points or cashback on purchases, adding value to every rand you spend.
- Special Promotions: Retailers may offer additional discounts or vouchers so be sure to check official retail websites or social channels.
Maximising Rewards
Use your card strategically for purchases that earn the highest rewards, such as large-ticket items or grocery shopping.
- Avoid Carrying Debt Into the New Year
The ultimate goal of using credit during festive shopping is to maximise benefits while avoiding long-term debt. Here’s how to achieve this:
Pay Off Balances Quickly
- Utilise the interest-free period to pay off your balance before interest kicks in where possible.
- Set up automatic payments or reminders to ensure you stay on track.
Choose Affordable Repayment Plans
- Opt for shorter repayment periods whenever possible to minimise interest charges.
- If you anticipate a tight budget post-holidays, consider spreading payments over manageable terms without exceeding your monthly budget – or ending up in a position where your ‘great deal’ turns into an expensive mistake.
- Shop Smart, Not Excessively
It’s easy to get caught up in the festive buzz, but smart spending always beats excessive spending. Focus on purchases that align with your long-term goals and provide real value.
Smart Spending Examples
- Invest in Savings: Purchasing discounted grocery items or household essentials during festive sales can free up your budget in the months ahead.
- Gift Strategically: Focus on meaningful and practical gifts within your budget to avoid overextending your credit.
- Monitor Your Credit Health
Using credit responsibly during the festive season can actually improve your credit profile in the months ahead. Regular payments and a low credit utilisation ratio demonstrate reliability to lenders.
The festive season is a time to celebrate, and with the right approach to credit, it can also be an opportunity to save and invest in long-term benefits. By using an RCS Store Card responsibly, planning your purchases, and sticking to a budget, you can take full advantage of festive deals without compromising your financial wellbeing.
Remember, credit is a tool. When used wisely, it can help you achieve your goals while ensuring that you start the new year on solid financial footing.
