While experts may advise against buying food on credit, many South Africans are forced to do this to avoid going to bed hungry. Picture: File
Funding your lifestyle through credit is a bad move, but for many households it might be necessary and unavoidable.
The one commodity financial advisers preach about never purchasing on credit is food – which may require an entire lifestyle change, even more sacrifice and a change of how you plan your meals.
The sad reality is that many South Africans are forced to buy their monthly groceries on credit if they want to make it through the month.
Not only are South Africans doing this, but they are also forced to take out extra loans to provide for their families, said Mervyn Abrahams, programme co-ordinator at the Pietermaritzburg Economic Justice & Dignity Group.
Speaking to IOL, Abrahams said South Africans first have to pay for transport, electricity and debt servicing, among other things, leaving them with very little or no money for other basic necessities.
One of the major factors that has led South Africans to buy food on credit is their low income or wages, he said.
Abrahams said the minimum wage South Africans can earn is around R4 000, which is much lower than the average cost of a household food basket. Last month, the average cost of a household food basket was R4 835.96.
Social grants in South Africa are R2 000 a person, which is also below the average cost of a household food basket.
Household staples such as bread and milk are also rising, leaving no room for people to add more things to their food baskets.
Abrahams said he sees no solution or alternative to the situation that South Africans are currently facing.
He said buying food on credit is a reality for many South Africans, and it is the best way for them to survive.
This means that South Africans are over-indebted, with many having little ability to service their debt, especially those who take out informal loans, which come with high interest.
Here are some ways, however, in which to ease the burden and bring down your grocery bill.
1. Create a list and a budget
If you have a monthly or weekly budget you can keep track of your finances and also set aside a realistic sum for groceries. A meal plan and shopping list to go with it is also a good way to stay on track and within budget.
2. Compare prices
Search store prices online to see who is having big discounts on items. You can also stockpile when there are big sales. However, knowing what things cost will help you know if you are indeed getting a good deal, or being duped by good marketing. Do your homework to ensure you make good and informed decisions.
3. Don’t shop every day
Always plan ahead and do a big monthly shop, which you can top up weekly with fresh produce if necessary. That way unnecessary things don’t end up in your trolley. The less often you go to the shops, the less chance there is of unnecessary items ending up in your basket.
4. Create a meal plan
Make weekly meal plans and stick to them.
5. Sign up for loyalty cards
Many retailers offer loyalty programmes, and some medical aids offer the same for healthy food choices.
IOL Business