7 Ways Many Kenyans are Getting into Bad Debts

7 Ways Many Kenyans are Getting into Bad Debts

How you will easily get yourself into debts

Getting into debts is far much easier than getting out of it. Simply, debt is bad!

Most blogs on the internet provide resources and give all the possible ways to get out of debt but none of them tells us the most important thing, how to get into debt!

You will find blog posts with titles like “How to get out of debt fast”, How to pay your debt and live a free life”, or “How I got out of $30,000 worth of debt”.

You don’t get more of “How to avoid getting into debts” or even “How to get into debts”.

Debt, just like comparing yourself to other people can paralyze you. It makes you worry about the simplest of things and gives you unnecessary fear especially when you don’t have a job or a source of income.

If you are living well without any debt, below are a number of lifestyle choices and acts that can lead you into debt. Avoid them as much as possible and you will continue being successful.

List of acts and mistakes that will get you into debts

#1 Living beyond your means due to false pressure

The world can be a good and terrible place at the same time. We are living at a time when advertisers will do anything to sell you that new iPhone that you don’t need. But you buy it anyway because your junior colleague at work bought it and you want to look cooler.

We see our friends swinging on hammocks by the beachfront on a company paid trip. They make us think that the World is all rainbows and sunshine and sitting on the beach with a laptop, sipping martinis and still make $1000 a day.

The next thing we do is take a mobile loan and head to the coast. When we get back we realize that we are broke and get another loan. By the time you get back to reality, you are deep in bad debts with no money to offset them.

#2 Lack of a budget is a recipe for debts

Many people learn the hard way the importance of a budget. You don’t have to. Just like in business, failing to plan, is planning to fail.

Lack of a budget will make you an impulse buyer and lead you to overspending. Creating a budget at the beginning of the month or every time you go shopping will help you save on unnecessary items.

#3 Lending money to friends

There is a quote that goes like, “If your friends don’t give you a plan of how they will repay you, don’t lend them your money”. If they have a plan, recommend them to your favorite bank!

Lending money is great; it makes you the “good guy” to your friends. This is true when you are not expecting them to pay you back. But if you are loaning them, it will only lead you to debts and make you look like a “moron without boundaries” to yourself.

#4 Signing up for mobile loans

If you live in Kenya, you might be aware of companies like Branch, Tala, Mshwari, KCB Mpesa, Eazzy Loan and many others. These companies are nothing but the highway to bad debts. They have a very smart way of luring you to sign up for their loans and increase your limits over time. The truth is, one day you will not be able to pay them and the result is obvious – you get blocked for any future loan and a possible auction to your household items!

#5 Being unemployed without an income source

If you don’t have a job, it is easy to borrow money to cater for your daily expenses. If not well monitored, your borrowing can lead you to trouble. Keep track of your credits and only borrow when necessary. If you have a job, have a saving plan for emergencies. This kitty will help you in case of job loss.

#6 Gambling and Sports Betting

This is probably the winner! Gambling can be very addictive and many people have gone to the extent of selling everything and borrowing money with the hope of becoming overnight millionaires. The chances of winning are very minimal and in reality, only the companies’ owners benefit from your money. If you want to get into debt easily, keep betting!

#7 Bonus – Not maintaining good health

Another mistake that can lead you into debt is not taking care of your health. Medical treatment costs can be a lot and sometimes you may need a loan to offset the bills. Staying healthy will reduces the chances of getting ill and hence saving on bills.

I hope this post has given you a few ideas of how easily you can get yourself into debt. You can control most of them before you join the “Debts Club”.

If you are already in debt, don’t worry, make a plan and network with your kind and soon enough you will be free.

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“Your situation is not unique. Your problems aren’t so different no one understands. That’s just your ego talking. You are not special. Someone has had it just as bad and made it. Someone has had it even worse and flourished…” – Tim Ferris

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