How to Manage Debt Easily
Five (5) Ways to Get Out of Debt Quickly
The trap of debt is ensnaring many Kenyans each day and it doesn’t get any better with the advent of mobile money, Mshwari, Tala, Branch and the likes. These would be ‘saviors’ are actually leading more and more Kenyans to the debt trap without their knowledge.
So how do Kenyans get out of the debt trap?
There is a quiet talk that 99% of the cars on the roads in Kenya are acquired through debt. How true that is, is a subject for another day. Today we would like to break down the tricks of managing your borrowing and staying afloat.
Here are five ways to get out of debt easily
- Manage / minimize your expenses and start saving money
- Don’t Borrow based on a future projected income
Be smart about how you borrow. Don’t borrow knowing that you might be getting money in the near future. Plan your debt based on the current stream of income. - Don’t borrow to spend rather borrow to invest.
Peer pressure can pile on you, resist it like a plague. A good number of young people in Kenya borrow to purchase things they have seen in their friends’ house or that fancy phone. Its totally unnecessary to go for spending to be accepted in particular class. The money you use on food and other household needs should come from your income not borrowing. - Avoid accruing penalty interest on your loans.
Don’t miss the due date of your loan repayment. In fact, if you can, make a habit of paying way before the due date. A delay by even a day attracts interest on the installment to be paid. If you are salaried the best bet is to put a standing order that puts into consideration your pay day. - Don’t borrow to repay a loan
in simple plug the source of drain. If you own a business and find yourself in debt, don’t borrow more until you find where the money goes. - Know when to let go.
When you find yourself pressed with a loan yet you have assets you can dispose off, don’t hesitate if that is the last resort. Sale off the asset and free yourself off burden
