What will South Africans do with their tax rebate?

By Staff Writer

Tax season is in full swing and a poll recently run by Justmoney.co.za indicates that South Africans will be doing the smart thing with their returns.

When the website asked its users: "What will you be spending your tax return on?" 59% of respondents replied "pay off my debts".

Andy Gilder, general manager of the site is glad to hear South Africans will be putting money toward paying off their debts considering the most recent stats regarding credit active South Africans.

Gilder said: "Given that around 55% of credit active consumers in South Africa are in arrears, it's good to see any additional income is being put where it is most likely needed. I'm just not too sure that many South Africans will receive enough money back from SARS to put a big enough dent in their loans."

If you do have a nice lump sum coming your way however, Gilder says there are a few things that consumer can do.

"We need to get into the habit of putting spare cash toward our most expensive debts instead of spoiling ourselves. The upside of paying off expensive debt quicker is often far more significant than people realise and can often be a better return than putting the same money into a low interest bearing savings account. "

"When your most expensive debts are paid off, you can put the extra cash into your home loan - over the course of twenty years the savings can be massive."

The rest of the results were a bit of a mixed bag with 12% indicating they would invest the money and, while 12% said that they are not registered for tax. Ten percent of users indicated that they will be spoiling themselves with their tax return and seven percent indicated they will be spending what they get back on home improvements.

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)