Once in a while, you will find yourself in a financial bind and request a friend or family to tide you over. Asking for a soft loan is quite normal.
Mobile loan apps make it even easier to borrow money when broke raids. Chances are you have interacted with such platforms, and even borrowed money from them.
Mobile loan apps are popular among the youth, and are making a killing. Unlike traditional lenders, these do not have tedious application processes. No paperwork is required. Besides, you need no guarantors or collateral. And the loan is instant. What could be more convenient and enticing!
Matunda is a communication and media studies graduate from Zetech University. She practised journalism for a year before trying her hand at modelling. She makes jewellery, gift cards and handmade décor items on the side.
Have you ever borrowed money from such platforms?
I dread being in debt but I just cannot avoid loan apps. Branch, Tala and Utunzi are the most popular apps in my circle of friends.
Are your reasons for borrowing money always compelling?
The need to borrow money for me is mostly influenced by wants rather than needs. I have occasionally had to borrow from friends and family to buy a dress, a pretty bag or a pair of shoes I had run into during my strolls in town.
There are even times when I would call someone to send me some money so that I can take a cab instead of matatu. These are things that I could forego, but I still convince myself that I must have them.
Have your friends ever influenced your financial decisions?
On numerous occasions I have bought an item or invested in a cause on grounds that my friends thought it was a great idea.
This always ended in disappointment after my financial status was thrown into disarray. As such, I have learnt to not involve them in planning for, and spending my money because this usually leads to misuse and regrets later.
How do you service your debt?
I mostly pay back from my income from different modelling gigs that I participate in. Proceeds from sale of my crafts also help me to put off any debts that I might have.
For fairly large amounts of money, I come up with a payment plan that works for both the lender and myself. We agree on the repayment period which reduces the pressure to pay back. Instalment plans are also easier to work with; than bulk repayment.
Have you ever defaulted in your loan repayment? What were the consequences?
I once did. I had borrowed money from a close friend to take care of a small personal matter. I thought I would be able to refund in two weeks, but this was never to be. It was embarrassing to ask my loaner for more time and had hoped that before he could ask for it, I would have offset the debt.
Unfortunately, he asked for it before I could get it. It is then that I explained my circumstances. He was so furious and even after clearing the debt, our friendship was thrust into the rocks and later ended, which I regret to date.
Have loans/debt affected your savings in any way?
Nothing is as frustrating as having to slice a large proportion of the income you have worked so hard for to settle a debt. This makes saving a nightmare because the little money that remains is for getting by.
I have had instances when I had to pay loans with almost all the money I had made from the sale of my crafts at the expense of buying materials to expand my small business.
To save my business from collapse, I had to withdraw my savings to restock. Unless you are borrowing to invest in a business, borrowing money is ill-advised.
Would you rather struggle to service a loan or fall short of keeping up with your friends’ standards?
As a model and someone who is in the limelight, the society’s expectations of me are simply dizzying. My peers have lifestyles that I may not always afford.
As someone without a regular salary, I would rather not put myself in a jeopardising position in the name of fun, and instead save up for a rainy day.
Daily Nation ke – Why are the youth debt ridden? @AfropagesEn https://t.co/1u8bORDa1L pic.twitter.com/5UVFA0DDTi
— Afropages (@AfropagesEn) October 12, 2018