Even in the current tough economic times it’s difficult to resist a bit of retail therapy...

Debt doesn’t have to consume retail customers if they play their cards right. This is according to Ian Wood, Group Financial Services Executive for Edcon (the country’s largest credit retailer).

"Having a store account offers many benefits like minimising the cash customers need to carry, having a complete record of all their purchases, access to exclusive club benefits and other products and services. We encourage our customers to manage their credit carefully; anyone who’s been in financial trouble knows how difficult it is to get out once you are in it. It is much easier to stay out of trouble in the first place."

Wood said shoppers should keep some basic pointers in mind when shopping, particularly on credit. Store cards and bank credit cards are a convenient way to pay, but consumers should take care to pay regularly on or before the due date to avoid stiff penalties for late payments.

The right way to use a store card is to purchase the things that you need or even the things that you want with the knowledge that you can pay off your debt when your account statement comes at the end of the month.

"Spending can be pleasurable, but if it’s going to land you in unmanageable debt then the pleasure will be short-lived indeed," said Wood.

With over 4.3-million active credit customers Edcon has a large financial services team available to counsel consumers on how to keep their group account up to date. In doing so they build a positive credit record and bureau score that will assist in the access to credit and facilities in the future.

Here are more pointers to help you manage your account and use your store cards wisely:

• Always pay on time (i.e. by the due date shown on your statement) to avoid unnecessary interest and penalty charges.

• If you can no longer afford your monthly instalment, immediately contact your credit provider and make future payment arrangements to either: (a) temporarily pay less or (b) extend your repayment terms.

• Don’t try to run away from the problem, but rather confront it. By communicating openly with your credit provider you are reassuring them of your commitment to repay your debt.

• Be honest with your credit provider. If your job status or salary changes, let them know. By keeping your credit providers informed in this way you are making it easier for them to help you.

• If you can, arrange for a longer repayment term so that your monthly instalment required will be reduced in value. Commit to these payments. As long as you keep to your new promise, the credit provider is not likely to take legal steps against you.

• Remember, maintaining a good credit record on your existing accounts will always stand you in good stead if and when you may need credit in the future (e.g. to buy a car or purchase a home).

• Never live beyond your means, especially when times are tight; be disciplined and only buy what you need not what you want. Don’t forget to save for unexpected expenses which all of us sometimes incur.

• Save your receipts and reconcile them with your monthly statement. Report any discrepancies immediately. Always safeguard your card and access pin.

• Know your debt — and the cost of credit. Work out exactly what fees and interest you are paying off on each debt each month; make it your priority to pay off debts with the highest interest rate first.

• As a last resort you can always go to an authorised debt counsellor and apply to be placed under debt review (this is a mechanism created by the National Credit Act for seriously over-indebted consumers), but remember that while such a request will help you to repay your debts to all your credit providers at a slower, more affordable rate it will also simultaneously prohibit you from purchasing on credit until all your debts have been repaid.

Edcon includes retail stores such as Edgars, Jet, Discom, CNA and Boardmans.