We have all been here, one day everything is going on well in your financial life and the next day, boom you have to start avoiding calls.
The debt rut is something that each one of us has to get out of if we are to prosper. Here are some tips to help you get out of debt this year.
Make a plan
Getting out of debt requires a strategic plan. The more the people and organizations you owe money, the more the need to have a better plan. Start off by listing all those that you owe and the respective amounts. This gives you an idea of how long you will take to get out of the debt rut when you compare with your rate of income.
Most of the time, we get into debt because of reckless spending. It starts off as something simple, buying airtime impulsively, buying that shoe or dress that you had not planned for etc. Within no time, we are in debt and having an impulsive spending habit does not make it any better. You need to come up with a budget and stick to it strictly. Do this every day, week or month and with each instance, try to cut off some of those unnecessary expenditures. Carrying fixed amounts of money and a small allowance for emergencies is also a sure step to help you cut on your spending habit.
Stay off Lending Apps
The best selling business in Kenya happens to be that of selling credit, in this case, loans. People are always ready to borrow and get money on a credit basis. Lending apps have taken full advantage of this and are offering very lucrative loans. Their best customers as you can guess are impulsive spenders. If you want to come out of debt, you will need to resist the temptation of installing these mobile apps on your phone. They will deal a huge blow to your credit rating if you happen to default on the payments.
A step at a time
With the plan that you made in step one, start paying your debts step by step. Do not wait to have a lump sum of money in order to clear your debts all at a go. The chances of that never happening are very high. Make periodic payments and remain faithful to the process of repaying them.
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