South Africans will soon be able to buy food on credit at supermarkets.
With Woolworths already offering their customers this option, Pick n Pay will soon join and will allow customers to get groceries on credit, EWN reports.
This will be through the Smart Shopper card programme, and customers will be able to purchase groceries on credit up to R40 000.
Pick n Pay deputy CEO Richard van Rensburg says 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 counsellor Deborah Solomon says it’s not advisable for shoppers to buy food on credit due to 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.”
So what happens when you can’t pay; Business Tech reveals that when a customer fails to pay their dues at the end of the month, they will be charged an interest rate on daily basis, and compounded at the end of the month.
Source: EWN, BusinessTech
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