Debt can either be a useful financial tool or a heavy burden, depending on how it’s managed. From student loans and credit cards to mobile loans and mortgages, understanding debt management is key to achieving financial stability.
At Jielewe, we believe that debt doesn’t have to hold you back — with the right strategies, you can pay it down faster, avoid unnecessary interest, and rebuild financial freedom. This Debt Management FAQs section answers common questions about reducing, consolidating, and avoiding debt in Kenya.
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Debt Management FAQs
Good debt is used for investments that increase your net worth (e.g., mortgages, education loans). Bad debt is used for consumption with high interest, like credit cards or payday loans.
Use the avalanche method (highest interest first) or the snowball method (smallest balance first) to systematically reduce debt.
Set up reminders, automate payments, and prioritize bills in your budget.
Debt consolidation can simplify payments and reduce interest if done responsibly with lower-interest loans.
Aim to keep your debt-to-income ratio below 36%. High ratios indicate financial strain.
Pay bills on time, keep credit utilization low, avoid multiple new credit applications, and monitor your credit report.
Yes, many creditors allow payment plans, reduced interest rates, or settlements in special circumstances.
A credit report tracks your credit history and score. It’s crucial for loan approvals, rental agreements, and some job applications.
Make consistent payments, explore repayment assistance programs, and avoid defaulting to maintain good credit.
Yes, refinancing can lower interest rates or extend payment terms, but check total cost over time.
Conclusion
Managing debt is not just about repayment — it’s about regaining control of your financial future. Whether you are paying off mobile loans, credit cards, or mortgages, the key is to have a clear plan, stick to your budget, and avoid taking on unnecessary new debt.
At Jielewe, we guide Kenyans toward debt-free living, so they can redirect their money into savings, investments, and wealth-building opportunities.
💡 Remember: Every shilling you pay toward debt is a step closer to financial freedom.