Financial mistakes consumers should avoid during Covid-19 Pandemic

The global coronavirus pandemic has triggered panic to most South African’s especially consumers. With the lockdown extended people continue to quantify the impact of corona virus on their finances. They tend to make financial mistakes that will leave them high and dry after the pandemic and bring financial uncertainty for many who could experience a loss of income due to workplace closure.

FNB Consumer Education Programme Manager, Dhashni Naidoo says some of these mistakes can be avoided, especially in these trying times. Naidoo warns consumers to do everything in their power to keep their financial affairs in control because stabilising their finances back to normal can be a bit challenging after the pandemic.

Naidoo shared a few tips  consumers should take into consideration and avoid during this pandemic. Naidoo said consumers should not cancel their insurances. They rather contact their insurance provider to see if they can reduce their premiums as opposed to not paying or cancelling the insurance all together. The dangers of cancelling or skipping payment on your policy can result into exposing oneself and your family to greater financial risk in future. It can also lead to higher premiums when you take up the insurance again in the future or be excluded from certain benefits.

A debt will remain after this situation has passed. Naidoo warns consumers to not take up unnecessary debts to cover their living costs. She said they rather look at how they can reduce their expenditure on no-essential items. Where possible, they should avoid using credit cards.

Making big financial decisions is one of the key points she raised.