Happy Friday! (or at least it would be if you were in control of or completely out of debt, innit?) Too soon? Tutaimba deni hadi we all get it right. Think of us as your trainer.
But it’s all good coz uzuri ya hii life is that nothing is new under the sun; and your problems today si za kwanza. There are solutions and that’s the sweet-spot of life.
I’m still very much invested na hii story ya deni because I am leaving no man behind matters getting our finances in check this 2022. If you’ve been following our docuseries ‘Why Don’t We Know This?’ then you’ll know that debt has been the hot tea because we’re all in a mess of sorts. If you’re not si heri wewe but stay with me ili ukasambaze injili to your friends and famo who could use this help.
Personally, I know about the chaos of debt – the when is not important. It’s the how. Na leo I want us to be about something: debt strategies. The enemy is not debt per se; the enemy is bad debt.
These are my debt strategies that I know will make sense to a lot of you. Let’s goooooo!
Answer the question, ‘What are we?’ – These debts zenye zinafanya usilale usiku, what are they exactly? To conquer debt, you have to keep it 100 msee. Don’t go about deni like me, Wafula and Sospeter that one time – 3 blind mice 🐭🐭🐭. Define between your short-term and long-term debts.
On short term debts decide what to pay first by order of interest rates. Always prioritize higher interest loans, no matter what. Why? Coz the longer you wait, the more you pay eventually. Also hao creditors ndio huwa na utiaji ya kushtaki watu kwa the higher authorities if you catch my drift 😭.
Once you have defined your short-term higher interest loans, then go into the lower interest ones. Baada ya hapo, save face, tule tudeni you owe friends and family, pay them even if they stopped sending reminders. Na uongeze kakitu for their patience.
Moving on to long-term loans… Hapa the strategies are two-pronged: i) You HAVE TO speak to someone and ii) you must also consider a direct deposit to service the loan. Talk to your RM if you’re in a deep mess… Kwanza now that we’re in a panorama, financial institutions get it, it’s not been nice and dandy - but they can’t know if you choose to suffer in silence in your corner. Speak with your RM so you know what adjustments to be made to accommodate your sitch and clean up the mess so you’re in good books and so your lenders are also happy. Standing orders are great. Most likely hulipi this long-term loan vile inafaa because you are the gatekeeper between your money na hiyo deni. Do this? Apply for an automated standing order. Treat pesa ya deni kama mchango ya matanga by never letting it reach your wallets ☝🏾😌.
Prepare for the worst – No, not because wanakuja kukubebea vitu kwa ploti wamama na soja wakikusengenya, haha! (Hi Sospeter 🤣🏃🏾♂️) But because even in the course of you trynna sort out your personal money mess, things could get messier because si ni life? You could lose your job, fall ill… y’all know the drill. So be prepared by having a kasmall emergency fund. That way, tuseme foreman aamke na hasira akuje awafkuze wote, you still have a fall-back plan to pay your debts as you search for your next big thing.
Take a ‘pay cut’ – Relax. Your heart is pounding at this statement because umezoea anxiety ya SMS za deni. Haha, inakuwanga hivyo 😬. (As a side note, you cannot solve anything under that kind of stress; so always breathe ata wakikutumia messages). I digress.
What I meant by ‘take a pay cut’ is to make getting out of debt the next and only priority after surviving. That way unazoea pocketing less. M’menipata ama I repeat? I’m saying you sort out your basics and bills then allocate 60% of what remains to clearing your debts please.
Fun fact: The first sherehe joint was built in 1886, THAT’S HOW LONG HUMANS HAVE BAMBAD AND CHILLED WITH THE BIG BOYS! That tells you sherehe can wait. Maliza deni kwanza nani. In fact, most of your mobile loans hutokana na partying while broke. Ask yourself… Is it a must?
Look at yourself in an excel sheet – You have all your debts crammed in your mind? Unaendanga bank kuchukua loan ya kujenga unapata uko CRB coz of a loan you took ukiwa intern by clicking on an ad! Ama… 🤣🤣🤣 and this is my favourite one. Unaenda family gathering and there’s that auntie of yours amekuumia ndimu juu ukona deni yake na ulisahau. Her throughout the function:
Anyway, Excel is your friend. And you can easily keep track of your progress. Also, I cannot explain how good it feels to permanently delete a row of deni! Tears in me eyes 😭😭😭😭! I genuinely wish this for each one of you!
Stay in your lane – Know your triggers for getting into debt. Kama ni impulse buying on IG – unfollow those pages and topics. Kama ni sherehe – penda kwako nani. That goes for human triggers too. Watu wanashtuka sana from the Tinder Swindler but kwa ground tunachukulia watu mobile loans. It’s really the same thing guys. Can we be serious? These triggers are like the Biblical ‘right hand that causes you to sin’; cut it off! (or just learn to resist – pia usikuwe wa kuchukia watu juu you have an unbridled liking for debt)
Tafakari ya Witty Banker.
Over & Out,
The Witty Banker
