Debt Management Guide & FAQs

Debt can either help you grow or hold you back, depending on how you manage it. From mobile loans and credit cards to mortgages and business loans, debt is part of everyday life for many Kenyans. The key is not avoiding debt entirely, but using it wisely and managing it effectively.

At Jielewe, we provide practical strategies to help you pay down debt, avoid high-interest traps, and use borrowing as a stepping stone to financial freedom. This Debt Management Guide complements our FAQs, offering deeper insights on handling debt responsibly.

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How do I pay off debt quickly?

Use the debt snowball or debt avalanche method:
Debt snowball: Pay off smallest balances first.
Debt avalanche: Pay off highest interest debts first.

Should I consolidate my debts?

Debt consolidation can lower interest rates and simplify payments, but only if you avoid accumulating new debt afterward.

What is good debt vs. bad debt?

Good debt: An investment like education or property that increases future earning potential.
Bad debt: High-interest consumer debt that doesn’t generate value.

How can I avoid debt traps?

Create a budget, build an emergency fund, avoid impulse loans, and pay off credit cards in full each month.

🔹 Key Tips for Managing Debt in Kenya

List and prioritize your debts – Start with high-interest loans like mobile lending apps before tackling long-term loans.
Avoid borrowing to pay debt – This creates a cycle that worsens financial stress.
Negotiate with lenders – Many banks and SACCOs allow restructuring to reduce monthly repayments.
Use the snowball or avalanche method – Either pay off the smallest debts first (snowball) or tackle the most expensive debts first (avalanche).
Build an emergency fund – Even while paying debt, set aside some money to avoid borrowing in future.
Limit lifestyle inflation – Don’t increase your spending as your income grows; instead, channel extra income into debt repayment.

Conclusion

Debt does not have to define your financial journey. With the right strategies, you can pay it off faster, reduce stress, and redirect your money toward savings, investments, and long-term goals.

At Jielewe, we are committed to helping Kenyans break free from debt traps and regain financial confidence.

💡 Remember: Every shilling you put toward reducing debt today is an investment in your financial freedom tomorrow.