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 Turn your debt around in 6 months

For many of us, January is the month to set goals, find renewed motivation, and make changes to areas of our lives where we feel that they’re needed. But let’s be honest, as the year and the motivation dwindles, these goals are often forgotten.

Which bank offers the best home loan?

Applying for a home loan can be a stressful experience – from filling out the paperwork to comparing the interest rates and navigating all the potential red tape. But it needn’t be.

6 smart ways to select the best medical scheme

It’s important to belong to a medical scheme that offers great benefits at affordable prices. However, due to insufficient knowledge, many people find themselves paying higher premiums for a medical scheme which does not even meet their needs.

Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide