January pay-cheque or debt cheque

South Africa - While this month’s pay-cheque may come as a relief for most consumers, experts said the bulk of this money would probably be used as damage control for debts incurred in December, and that things will get tough.

FNB credit card chairperson Chris Labuschagne warned this year is going to be tough on South Africans due to the volatile rand, increased living expenses and increases in electricity, water and food costs.

Making a loan to pay off a debt may seem like an easy solution, but Labuschagne said this would result in serious financial difficulties.

DebtBusters marketing head Wendy Monkley said the day after January’s payday would be the most shocking for many South Africans.