Here’s how to get out of mobile loan traps

Mobile Loan Apps

Unlike traditional money lenders whose loans come with stringent conditions, mobile loan apps are easily accessible to anyone with a mobile phone. They offer convenience, require no paperwork and provide instant results.

Many young people are sold on this factor and that is one of the reasons why the appetite for loans is in the hundreds of billions of shillings.

Today, many people in Kenya burdened with mobile loan debt. Repaying these debts becomes so difficult that many will join another mobile loan application to take a loan to repay a different loan. It becomes a cycle, and before one knows it they are stuck in crushing debt.

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The worst thing is that many times, these loans are not taken to advance a business or make an investment. Rather, they are taken to fund social wants or to plug personal budget deficits.

Poor money management skills contribute to financial stress and tackling this can help one to steer themselves to a position of stability.

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A conversation with a colleague led me to explore the reasons that make youth take these mobile loans and how they can overcome them.

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