Majority of Kenyans who have been living from hand to mouth are clearly among the most affected by the COVID-19 situation, beyond posing a threat to our lives, coronavirus has equally crippled cash flow and a number of Kenyans are left with empty pockets.
Despite the government’s efforts to issue funds to cushion the needy in the society, there is no doubt that some Kenyans have resorted to taking loans on various lending channels to sustain their lifestyle or at least ensure that they do not lack their basic needs.
Even though these loans might offer temporary solutions this might have a negative impact on your financial stability post-COVID-19. Taking loans might not be entirely avoidable but it is important to limit yourself from overborrowing.
Here are ways Kenyans can avoid getting in debt
Avoid spending on unnecessary things
This is not the time for impulse buying or spending on things that are not a priority. Draining your pockets over things that can wait can be a big mistake. To avoid this, create a monthly plan that will limit you to spending on the exact things you need to survive a pandemic.
Live below your means
This simply calls for a complete lifestyle change from what you eat to where you stay. You can slowly minimize things that might come off as a luxury.
Sell household items that you do not need
Borrowing should be your last option and one of the ways you can avoid going that direction is by selling household items that you do not need. You should, however, be careful not to end up selling even other things that you need.
Move to a smaller/cheaper house
If your rent consumes a larger percentage of your salary, you can cut on the cost by temporarily moving to a cheaper house. This will help you channel the saved money to other areas.
Take loans from channels with a low-interest rate
In emergency situations that will require you to take a loan, make sure that you borrow from lenders who have no interest rate or a low one which will act in your favor when you are paying back.
Be open to signing up for other jobs
Having one source of income might not be enough to sustain you during this time of crisis. Although this might work for people with 6 figure salaries the ‘common mwananchi’ requires a different strategy which calls for working extra for extra pay.