Debt experts warn Black Friday could deepen consumer financial strain

Debt experts are cautioning that this year’s Black Friday shopping period could push already distressed South African consumers further into debt, as economic pressures continue to weigh heavily on households.

Neil Roets, CEO of Debt Rescue, on Monday said the firm is “undeniably concerned” about the risk of consumers overextending themselves during the annual retail event.

“While Black Friday used to be associated with excitement, luxury purchases, and once-off bargains, our latest survey shows a very different reality emerging for South Africans," Roets said.

"This event has shifted from a feel-good shopping moment into a period that can easily trigger financial pressure and unnecessary debt for already strained households.”

According to the survey, half of respondents believe Black Friday encourages people to take on debt they cannot afford, while one in four say the intense advertising and promotional hype creates stress and pressure to spend.

Roets said that what is particularly worrying is that people are no longer shopping for luxuries.

“Nearly two-thirds (64.3%) are relying on Black Friday for discounts on essentials like groceries and food, which is a clear sign that households are under immense financial strain," he said.

"When people are depending on a retail event for basic survival, the likelihood of turning to credit becomes far greater, especially as we move into the festive period.”

Roets noted that while 60.9% of consumers plan to use cash or debit cards, the trend is driven not by financial comfort but by fear of worsening their debt load.

“However even this behaviour is driven by fear—fear of accumulating more debt in a country where many already spend up to 80% of their income servicing existing credit. This is absolutely a period in which consumers can and often do fall into more debt," he said.

"Black Friday has become a pressure point, and our concern is rooted in the financial reality facing millions of households. Our message remains consistent: approach this season cautiously, prioritise essentials, and seek help if debt has already become unmanageable.”

Benay Sager, executive head of DebtBusters, echoed the concerns, noting that Black Friday promotions have expanded far beyond a single day.

“What we tell consumers is that if you need to borrow to pay for something during Black Friday or Black November sales, then you should really have second thoughts about whether the item is essential for you," Sager said.

"It’s very easy for us to get tempted by things that are not necessarily essential but are “wants”, so it’s important for consumers to make that judgement call.”

Sager added that overspending at this time of year can create severe financial problems due to the extended gap between December and January paydays.

“Most get paid around the middle of December and their next pay-check will be all the way at the end of January. During that period, a lot of things happen – for example, in addition to festive season expenditure, your fixed payments, such as rent and insurance will go out at the beginning of the year; and then things like stationery or school items for your kids also become expenses in early January," he said.

"So it’s important to think of November, December and January as three months that run together, and then make sure that you’re planning your finances accordingly.”

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