How to owe less and have more in 2023
Despite South African interest rates having already risen well past pre-pandemic levels, the overwhelming majority of experts predict that 2023 will bring even more rate increases. This means that buying anything on credit will be more expensive than recent memory.
This, however, shouldn’t affect your ability to enjoy the best and latest technology, appliances and home essentials from leading brands. Jonathan Hurvitz, CEO of Teljoy gives the following tips on how to enjoy more of the best for less.
1. Weigh your options
Buying a new refrigerator, washing machine or television is a high consideration purchase and needs to be researched thoroughly. Every aspect, from price, to aesthetics, durability, functionality and even energy efficiency, must be looked scrutinised. Looking at reviews from fellow consumers or asking a knowledgeable friend can also help you to make the best choice.
2. Budget
Judging affordability is about more than just looking at your net income and deciding on the most amount of cash you can spend at one time. Your current obligations, future financial goals (like debt elimination), potential emergencies and general savings need to be factored in. Put together a budget and be sure to factor in all of your expenses to make sure that you’re able to meet your monthly obligations.
3. Assess purchasing methods
With the interest rate now at 7% (last seen in 2017), and set to increase further this year, buying on credit is becoming impractical for most South Africans, and few people have large sums of cash available. Although subscription, or rent-to-own, has been around for many decades, it is woefully underutilised, but offers some of the best benefits.
4. Read the fine print
The vast majority of credit offers on the market come with stiff penalties, even those that claim no interest. For instance, some will offer “four easy payments over six weeks with no interest”, but should a payment be missed, you’ll be liable for heavy penalties. Although there may still be penalties for missed payments, by subscribing you have the flexibility to cancel at any time should you find that you’re not able to make the monthly payments and the product will be collected and the payments stopped
5. Keep it Real
While buying on subscription can offer more options to enjoy higher quality, cutting-edge technology, always make sure you are realistic about what you can afford to pay monthly. If you’re finding the monthly cost too much, you can always downgrade to a cheaper model or cancel and return it. The beauty of subscribing is the flexibility, as well as the included benefits such as maintenance, free delivery and risk cover (an important consideration in South Africa) all built into the monthly cost.
Shielding buyers from interest payments, subscription opens up a new world of products and technologies in an affordable, flexible way. For more details, go to Teljoy and shop online for TVs, home appliances, technology, furniture, and so much more.
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