A lot of things age like milk! Like how you plan and swear by the switch ups you’ll make in your finances without being intentional… alafu sasa ongezea zile madeni uko nazo.
You’re probably in this sitch; and have been in it for so long ata you don’t remember the last time you REALLY looked forward to pay day. I said REALLY the way I did coz you still do but only for your peace of mind; and so that wenye wanakudai stop blowing up your phone with calls and SMSs. Kuna wenye huenda that extra step to call your friends and family so you’re constantly on edge… ugh the mess of it all jamani!
And so, the relief of keeping those off for 3-4 weeks feels like heaven, right?
But imagine, if you quieted them for good, soon? Ni possible and I know this firsthand.
The first step, I’ve found, to getting out of this cycle is to love yourself enough to want lasting peace for you. Kuna makasiriko huwezi control the moment you step out of the house… jua au mvua, traffic, rude kanges, noise pollution, the price of things (saa zingine ata humean kubuy kitu, but you see the price on it and your day goes to the dogs because sasa mandazi ni kitu ya kuuzia mtu 30 bob???). Unafika mjei, foreman na mkubwa have a few things to let off their chests, your coworker called in sick, so you have to work double, unajaribu kupigia mtu simu unapata huna airtime yaani…
After all that and many other stressors, jioni ukirudi home, you mind deserves rest nani. Si kufunga macho and all you see is -ve numbers. Life is not easy, beloved, but it is NOT supposed to be this hard, like c’mon???
So say it with me, “This is the year to get out of bad debt.” (I called it bad debt juu kuna good debt kama mortgages and other long-term goals for which your RM has worked out a plan. However, this could also be bad debt if you’ve not been sticking to the said plan. Are we together?)
First, accept that you are in a bad situation. Proceed to affirm that you deserve better – I didn’t make the rules but wallahi tena, the universe has ears. Follow through with a plan by i) understanding different kinds of debt you’re in and ii) making an actionable plan towards getting out of them.
The most common types of debt zenye most of us can relate to ni hizi (Again, naongelea personal experience and what I know (could make sense to a lot of you too)):
- Secured debt – hizi huwa na collateral. So tuseme you secure a loan then unahitajika kulist gari yako or some other high value asset incase ughost bank wakujie. But si ni life? Usually, these kinds of debt huwa guided by an RM… well, at least that’s how the bank that loves you (us guys) does it. If your bank imekuwachilia mkono ukafigure out kivyako, it’s time to leave, beloved. Seriously though, this is not the kind of thing you go at solo. Also, stop leaving in fear, no bank will nini you for asking for a game plan – if anything, it is your right. A bank gives you money na roho safi sana; wanting you to prosper. No bank or reputable financial institution wants you to not get them back… or to fail. Notice the emphasis on the last sentence. Maneno ya shylocks mimi siezi ongelea… ogopa sana hao watu coz what the what???
- Unsecured debt – hapa ndio nduru iko. Because in this our Kenya today, hizi loans unaeza access from multiple creditors and these are the ones that get you in mad beef coz you get into a cycle. Unachukua KCB M-PESA bila plan, due date ikikaribia unarukia ile ingine inarhyme na Yala ndio ulipe KCB M-PESA. Na kama loan limit yako Yala haifiki bei, unaongeza the other one that’s a ‘part of a tree’. Short term solutions that never end. Kumbuka hapa pia you’ve not factored in things like interest rates for the other loans you’ve taken. Interest rate ya KCB M-PESA is the lowest in the market at kitu 7.5%. Ya ‘Yala’ ni anywhere between 11.4% or 15.2% na ya ‘part of a tree’ is between 13% -23%. Call yourself for a meeting and ask yourself some tough questions. Would you rather slightly delay that KCB M-PESA repayment and get charged a small lateness fee ama apply for loans going up to 40%???
Shida huwa looking for an easy way out bila a strategy. And it’s kind of weird to do the same thing over and over then expect different results, innit?
Kumbuka pia KCB M-PESA wakikucall following up on a late payment, unawapea tu a date yenye uko sure utalipa. They also don’t enjoy bombarding you with phonecalls. This should also go for the ‘Yala’s and them. So you commit to a date and you swallow that chunky pill of gall one time.
The next time you want to take out a loan, jiulize mawili matatu about why you are taking the loan. Do you REALLY need it? Can you push whatever it is hadi ulipwe? Are you ready kulipa interest on small small loans, really? If you do decide to take it, utarudisha by the due date? Unapanga kulipa aje.
When you ask yourself these questions as your shoes kuenda local, utajipata tu umerudi kwa keja because what makes cents, makes sense and it has been accorded to each one of us abundantly. You’ll find that FOMO hapa na pale will translate into financial wins for you!
Tufanye hii kwanza and I’ll be back to drop more gems on all things debt. Meanwhile, we’re doing a whole thing called Why Don’t We Know This (about money manenos). Jipange because this year ni kusema na kutenda: WE ARE GETTING OUR FINANCES IN CHECK, m’kay? Good.
Over&Out,
The Witty Banker
