Guiding consumers since 2009

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 The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Wax On Wax Off Wednesdays at Rouge Day Spa

Price: From R50
When: Wednesdays
Where: Cape Town

Aarya Restaurant Christmas Lunch Special

Price: R425
When: 25 December 2019
Where: Johannesburg

Da Vinci’s Tantalising Tuesday Pizza Special

Price: Available on request
When: Tuesdays
Where: Cape Town