By Christiaan Coetzee, CEO of FinFix
As the digital economy continues to grow and consumers use an app for everything, from ordering food and groceries to online shopping and entertainment through streaming and gaming apps, have you ever sat down with a copy of your monthly bank statement and calculated how much you spend on subscription expenses and online purchases?
Soon, these expenses will go up even more following the announcement of the proposed VAT increase of 0.5% in 2025 with an additional 0.5% increase in 2026. Not only with costs increase on the most essential monthly expenses such as fuel, electricity and food, but on every item you purchase, app utilization and online subscription you are signed up for – adding to the already mounting pressure on consumers.
Easy steps to know how much you are spending online
There are several easy, yet crucial proactive steps consumers could and should take to safeguard their financial future. Avoiding unnecessary debt, maintaining a budget, and prioritizing essential expenses are key strategies to remain financially resilient.
At FinFix, a debt counselling company based in Pretoria, we have been urging clients and consumers who enquire with us regarding their debt to take some time to go through their monthly statements and get a clear understanding of where their money goes.
While consumers are aware of larger monthly expenses such as vehicle repayments, mortgages, school fees etc, many consumers rarely take note of their monthly online subscription and app expenses.
The convenience of ordering groceries and take-away foods online and delivered to your door has some unintended consequences. Many consumers, while somewhat keeping track of their grocery and food bills, tend to spend more than what their budget allows.
The same goes for online shopping of various items, but it is entertainment through streaming and gaming services as well as apps purchased on Google Play and iStore that mount up to hundreds of rands that consumers were not even aware of. This also includes in-app or in-game purchases over an above a monthly subscription fee.
Checking your bank statement and going through your Google Play and iStore billing statements will have many consumers surprised on how much they actually spend, with many realizing they are being billed for apps and services they haven’t been using for ages but never cancelled.
In most cases, it’s quite easy to cancel, and one can save a lot of money yearly if you do this wisely. In cases where families have multiple subscriptions for the same service, we remind consumers of the family packages that many app subscriptions have on offer that could save consumers substantial amounts of money.
Knowledge is the key to your financial freedom
Consumers forget that online and digital subscription services add up quite quickly and spending roughly R500 a month on unwanted or forgotten subscriptions amounts to R6000 a year. These funds could be much better used on the likes of an emergency or ‘rainy day’ fund, investments for retirement or to pay off existing debt. While this example is on the low end, consumers can save thousands of rands monthly by getting rid of small or unwanted expenses.
It’s not only subscriptions, but other small expenses pile on as well. Small holes sink big ships, and if consumers set aside one evening a month to monitor their expenses and budget for the upcoming month, most will change their spending behavior and ultimately save money.
The Role of Debt Management in Financial Recovery
In an economic climate where increasing costs and rising interest rates place immense pressure on consumers, debt counselling companies like FinFix play a vital role in assisting individuals to regain financial control. Empowering South Africans to achieve financial freedom responsibly and transparently, FinFix helps consumers consolidate and manage their debt responsibly.
While it does not provide financial planning or investment advice, debt counselling offers crucial guidance on debt reduction, helping individuals avoid deeper financial distress. The stigma surrounding debt counselling remains a challenge, but seeking professional assistance can be a crucial step toward financial stability rather than a sign of failure.
It is important to recognize that debt counselling is not about avoiding debt but rather restructuring it to make repayments manageable. Consumers who complete the process successfully are cleared of their debt obligations and can rebuild their financial profiles, enabling them to access credit responsibly in the future. Without intervention, many consumers remain trapped in a cycle of continuous borrowing, which leads to long-term financial strain, particularly in retirement.
As the economic landscape continues to evolve, financial literacy and responsible money management will be more important than ever. FinFix remains committed to supporting individuals through debt counselling, empowering them to make informed financial decisions and work towards a more secure financial future. Should the VAT increase be passed by parliament in the coming weeks, FinFix has vowed to absorb the VAT increase for 2025 and 2026 for all existing debt review clients as a tangible way to demonstrate our commitment to their financial well-being.
About FinFix:
FinFix is a leading debt review company dedicated to helping South Africans regain control of their finances. With a team of experienced professionals, FinFix provides personalized debt solutions and support to individuals struggling with debt. FinFix is committed to providing ethical and transparent services, empowering clients to achieve financial freedom. www.finfix.co.za
About Chris Coetzee
Chris Coetzee is the founder and CEO of FinFix
