PnP credit offer is food for thought
But debt counsellors advise against buying groceries on tick
Thinking of applying for an account at Pick n Pay? Think again. That's the advice of financial advisers and debt counsellors who say it's unwise to buy groceries on credit and that the more access you have to credit, the more likely you will be to use it. "If you aren't using credit to buy your groceries, why start now? And if you already have a credit card which gives you interest-free credit for 55 days, why would you need this account?" says financial adviser Craig Torr of Crue Invest in Cape Town. More credit cards and accounts usually equal more costs. But the Pick n Pay account is being offered free of an initiation fee and attracts a monthly fee of just R10, which is incurred only in the months that you use it. Credit providers are entitled to charge an initiation fee of up to R150 when granting you a credit facility and can charge a monthly administration fee of up to R60. High cost of credit Richard van Rensburg, the deputy CEO of Pick n Pay, says the high cost of credit is...
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