Debt counsellors are warning consumers against buying food on credit, saying that it will have a negative impact on overall debt.
Pick n Pay is the latest store to offer customers the option of purchasing groceries on credit.
The supermarket says that it will use its Smart Shopper card programme to select shoppers who qualify.
Pick n Pay deputy CEO Richard van Rensburg says that the store accounts have been designed to exclude hidden fees that exacerbate the cost of credit and charge the lowest monthly fee of R10.
However, Debt Rescue CEO Neil Roets says that it is better to buy assets on credit than food.
“Food is something that you definitely should not buy on credit. Good debt is having a home loan or a car. But if you have to finance food, then you are in big trouble.”
Debt counsellor Deborah Solomon says that it’s not advisable for shoppers to buy food on credit due to the interest charged on them.
“Food is a necessary living expense which you need to be able to have access to and it’s not wise to spend credit on food, especially when you can’t afford to pay that credit off in its full capacity at the end of the month.”
By Koketšo Motau for EWN