By Nomali Cele
I don’t like the term “black tax”. The term and the recent swirl of analysis around it feel like a callous way to pathologise poor black people. For those Afropolitans with family responsibilities that they are happy to honour, budgeting plays a big role in how you can take care of your family responsibilities while allowing yourself to live your best life.
A lack of financial planning and over-promising can be dangerous and can lead some people to indebtedness. Drawing up a budget or financial plan will give you an overview of your finances. This overview will let you know the amounts you can realistically part with on a monthly basis. Once you’ve done your budget, you can then draw your boundaries. You cannot contribute an amount you don’t have, and pushing yourself to do so can lead to more problems in the long run. Instead of taking credit, it’s always better to save or pay in advance for something, which is where a lay-by payment comes in.
Is part of your family responsibility contributing to a renovation project or making sure the children in the extended family have new school shoes next year? A Lay-by payment might be just what you need.
What is a lay-by payment?
A lay-bye payment is an agreement a customer enters into with a retailer to put aside an item, or several items, and pay the items off over an agreed upon period of time. You are required to put down a deposit for the items – it can be any amount but some retailers require a 10% deposit.
What are the benefits of a lay-by payment?
Using the lay-bye method to purchase something has several benefits. For one, you pay the set amount only – unlike with credit purchases, which accrue interest as you pay them off. When you opt for lay-by payment, you have a longer period to pay off the item. Retailers allow anything from three- to 12-month repayment periods
What are the terms of a lay-by payment?
Read and discuss the terms of the lay-by payment before signing up. Usually, you will forfeit the deposit and any other amounts paid should the payment period end without you fully paying off your items. The faster you pay off your lay-bye, the sooner you have it but there will be no discount.
Because you are paying off specific products, which will be set aside for you for the duration of the lay-by payment period, you will collect at the same store you do your lay-by. This is due to many factors such as the long payment period and items going out of stock.
With over eight weeks to go until the Festive Season, a lay-by payment can be a great financial planning tool to help you with your family responsibility.