Building workers stagger under festive debt

Most of the members of the Namibia Building Workers Pension Fund (NBWPF) who partook in a recent survey regarding holiday expenditures, said they anticipate settling their December holiday debts only by the end of this month.A total of 36 respondents participated in the online survey, and 70% indicated that they incurred debt during the festive season. About 22% of respondents will have settled their debts within six months, while 13% will take up to half or three-quarter of a year. Eleven percent will take up to a year to pay off their holiday debt.“The accumulation of the debt, due to external pressures such as the expectations over Christmas and during the holidays, is worrying,” said NBWPF principal officer Enwich Kazondu.The biggest spending during the holidays for most respondents (40.54%) was on food and drinks, followed by gifts for friends and family (18.92%). For only 13.51% of respondents, entertainment and activities was the biggest spending category.OverspendingMore than 55% of respondents earned less than N$5 000 per month, while only 8.3% earned over N$15 000 and up to N$30 000 per month. Nearly 39% of respondents had to do with N$3 000 or less.Nearly 29% of respondents spent between 51% and 75% more than their monthly salary, whereas one out of five spent between 76% and 100% more than their annual salary. About 14.3% of the respondents spent more than double their monthly salary, and only some 11% did not spend more than their monthly salary. “The scale of indebtedness as a result of spending during this season is worrying. This is especially the case, if the largest increase in spending was in the food and drinks category and gift for family and friends category,” said Kazondu.RepaymentRegarding the resolution of holiday-related debt, the majority mentioned using their salary or generating additional income through extra work such as selling sweets and fudge.Many had referred to taking out a loan and by paying monthly instalments.According to the survey, a positive indication is that close to 95% of the respondents want to make changes and alter their holiday spending habits. The NBWPF is considering and shall prioritise the offering of financial literacy training to its members, Kazondu said.

Building workers stagger under festive debt

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Republikein 2025-06-17

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Building workers stagger under festive debt

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