Avoiding overspending online

© Kirill Kedrinski - Fotolia.com

"With the increase in online shopping in South Africa, we are seeing more and more people spending their salaries online and swiping their credit cards to buy clothing, technology and food items," says Wikus Olivier, debt counsellor at DebtSafe. "However, for retail therapy addicts, this is too easy and it leads to many people getting into credit card debt with a click of a button."

"Online shopping can be quick and convenient, which is a positive thing should you perhaps not be able to leave the kids alone at home and need to buy some groceries. However, to avoid overspending on unnecessary items online, here are a few tips when shopping online."

Six tips to online shopping

1. Set a budget - work out how much you want to spend and stick to it. Always remember to add in the delivery costs, as this can add quite a bit on to your purchase
   
2. Decide what matters - what are your must have features vs. those that are nice to have. For example, if you are purchasing a laptop is it necessary to purchase the extra storage or is the standard amount that comes with the laptop sufficient?
   
3. Compare products - the last thing you want is to receive your product and find it is not what you thought it would be and now you are stuck with it. Always read the reviews online and compare prices to make sure you are not being overcharged. Sometimes the convenience is not worth the extra costs.
   
4. Hit 'pause' if your dream dress is out of stock - should you log on for a web-only sample sale and find your favourite item has already been sold, you might be tempted to buy something else instead. Tell yourself, "Try again tomorrow," and log out.
   
5. Do not keep your credit card on file - by having your credit card details on file you are on the fast track to one-click impulse purchases. Opt to enter your payment info each time you shop online, and use those extra minutes for an "Is it really worth it?" gut check.
   
6. End online buyer's remorse - retailers often use 'cookies', files of your personal data stored by web browsers like Firefox and Safari, to come up with those "If you liked that, you'll love this" recommendations. Some websites might even use the information to quote you higher prices based on your shopping habits. Delete cookies in your browser's preferences from time to time and see if you start to get better deals.
   

"What is important to note is that just because it is easier to shop online it does not mean it will be easier to pay off the credit card debt. Whether you shop online or from the local supermarket, using your credit card and giving into impulse buying needs to be managed carefully," concludes Olivier.