Chachanomics Money Talks

Reader's Question  My name is Davis. I am 30. I am a single nurse earning a net of Sh41,000 in rural Kenya. My soft skills earn me an average of Sh8,000 to Sh13,000 monthly. However, I am unable to get out of debt and this has led me to fall out with close family members who secured the loans because auctioneers are breathing down their necks. My loan stands at Sh203,000 with Sh70,000 in arrears. Other debts (mobile loans) stand at Sh63,000. Rent is Sh6,000, Shopping Sh3,000, Electricity Sh500, all other expenses Sh2,000. How can I save myself from this hole and how long would it take to get back on track and develop myself? You are trapped in bad debts which cumulatively stand at Sh266,000 and some are in arrears due to cessation of payment. Debts are emotionally stressful and socially straining for they can lead to family breakdown as demonstrated by your sour relationship with your parents and siblings. Your income total averages Sh51,500 (net income of Sh41,00 plus monthly aver

Reader's Question My name is Dennis. I am a lab Technologist on a contract that’s ending in November 2024. I earn a net pay of Sh56,917. I have a wife and one baby. I literally live on loans because my pay goes into debts. I have a pending salary advance of Sh90,000, payable at Sh30,000 installments monthly. I also have credit loaners of Sh5,670 monthly for six months, I have paid three months already, rent Sh10,000, monthly shopping Sh10,000, wifi Sh3,000, electricity Sh3,000, water bill Sh1,000, transport to work Sh 2,000. I am unable to even save for emergencies. Kindly help me. From your financial report, you have three major challenges: vicious cycle of bad debts (salary advances and credit loaners), lack of savings to cushion you against any emergency and lack of an investment plan to increase your income. You are living beyond your means because your total expenditure is Sh64,670 (total recurrent expenditure of Sh29,00 plus the total monthly loan repayment of Sh35,670) where