South Africans have been on the receiving end of an onslaught of price hikes and unavoidable increases in basic living expenses over the last two years. For the average consumer, just switching on their TV or electronic device is a grim reminder that we’re in the middle of an economic downturn. Every headline and report points to the reality that if ever there was a time to get your house in order, it is now.
The current state of household income
South African pockets are stretched. Expendable income in the average household is shrinking because of sharp increases in the cost of water, electricity and rates tariffs. Added to the soaring price of fuel and the VAT hike from 14% to 15% in 2018, consumers have had no choice but to adjust their spending to try and stay on top of the cost of living.
But for many households spending less wasn’t enough. The South African Reserve Bank
(SARB) quarterly report showed that, while household consumption has dropped, more South Africans were borrowing from their bonds and taking out loans and overdrafts to sustain spending in the last quarter of 2018.
A decline in consumer confidence
Skepticism in the state of the economy is reflected in the Bureau for Economic Research (BER) report confirming that South African consumer confidence declined during the first quarter of 2019. Slow economic growth, a weak exchange rate, growing unemployment and load shedding have left South Africans fiscally nervous, and understandably so.
In the midst of economic uncertainty, South Africans are cautious about spending and actively looking for ways to manage their finances more effectively. Rami Sassen, CEO of Teljoy, shares his practical tips to survive in a do‐more‐with‐less economy.
Learn to live without credit
Despite consumers taking out more loans to meet expenses at the end of 2018, the latest retail sales data show that households are hesitant to take on any more debt. You might not have the cash outright to purchase durable goods like furniture, appliances and electronic goods so it’s wise to look for alternative rent‐to‐own options that don’t put you at unnecessary risk of blacklisting or a bad credit rating if you are retrenched or unable to pay.
Opt for flexibility
It makes financial sense to secure the most flexibility possible when it comes to financial commitments during uncertain economic times. Choose month‐to‐month contracts that don’t incur excessive penalties if you need to downgrade or cancel for financial reasons. By the same token, those same contracts should also allow you to upgrade easily should you wish to do so.
Get the most for your money
Steer clear of agreements that result in third party or out‐of‐pocket expenses when it comes to licensing or maintenance and repairs. You should also have options built‐in that take the stress out of making purchases and give you the reassurance that you are getting the most value for your money.
Teljoy’s innovative rent‐to‐own model affords every South African household the opportunity to have the essential appliances, furniture, and electronics that turn a house into a home.
Their month‐to‐month contract with the option to take ownership after the rental period offers you the comfort of knowing that if your financial situation changes, you can return appliances or downgrade to a more affordable option without penalties.
What’s more is that with Teljoy your clear credit score stays that way because you can cancel at any time and it won’t affect your credit rating or result in blacklisting. You are also assured of good value for money with free delivery and set‐up, as well as a maintenance plan and risk cover, included in your contract.
With the added ease and convenience of applying for a rent‐to‐own contract online, consumers supply minimal supporting documents before being contacted to finalise the contract within 48 hours. In a matter of just days, you can shop thousands of products online without having to stress about economic uncertainties outside of your control. Teljoy makes it possible to get your house in order, without the risk.
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