Living in a country where unsecured loans are dished out by mobile money apps, it is easy to find yourself with huge debt.
If left unpaid over the stipulated duration, then the Credit Reference Bureau (CRB) will add more debt of few thousand shillings to the exiting ones.
Below are five ways to pay off mobile money loans quickly.
- Pay as much as you can in a month
Once the salary hits your account, or the business generates the target profit, do not postpone paying off the debt. As a matter of fact, add a few thousand on top of the amount set aside. This will see one get out of debt faster than expected. If one only pays the required minimum limit of the existing loan it may take quite a while to complete paying off the mobile loan.
2. Delete all loan apps
Once a mobile money debt has been paid, it is easy to fall into borrowing a larger amount than before. To fight off this temptation, once the debt has been paid, uninstall the loan apps from your mobile phone.
3. Cut back on unnecessary spending
Purchasing items that have not been budgeted for prevents one from achieving financial freedom. Many people get in debt and stay in debt because they have a tendency of buying what they want at the moment without considering the consequences of financial situations. This kind of spending cost a lot more than expected. Instead of buying things that are equated as wants, put that money into paying the existing loans. If an individual can be satisfied with surviving with less than they want then one can easily pay off the mobile loans with what they have saved.
4. Pay debts with high interest first
The longer you stay with debts with high-interest rates, the more money you will pay. One the most successful way of paying off your loans is by making minimum payments on all your loans except one. Choose the one loan that is charging the highest interest and put your extra payments on paying that one first. Once that loan is paid off, take the extra money and put it in the next high interest charging loan
5. Set up a paying goal
When it comes to paying off mobile loans, it is of great importance to be realistic with achievable goals. This requires time, commitment, and self-discipline. It is, therefore, advisable to monitor one’s progress often to enable them to stay on track and feel motivated in reaching the set goals.