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Chapter 12 - Consumer Law

Buying clubs

One way of buying something expensive without using credit is by forming a buying club. A number of families, say about ten, can start a buying co-operative together. Every month each family gives the co-operative a certain amount of money, for example R100. This money is put together and every month one family gets a turn to have all the money. Ten families giving R100 a month makes R1000 a month.

In this way every family gets a chance to buy something expensive about once a year without having to pay all the extra costs of credit - there are no finance charges or repossessions.