How Do You Keep Manageable Debt?

One of the biggest questions you might have is, “How much debt is too much?” While the amount of debt you carry often comes down to comfort, these tips can help you with debt management in every phase of life.

Don’t skimp on your emergency fund. Having cash on hand can help you avoid using your credit cards when emergencies come to call.

Keep your credit use below 30 percent. Credit utilization means the amount of credit you have used compared to how much you’ve been given by a lender.

Experts recommend using no more than 30 percent of your available credit to keep your credit score high. So, if you’ve been given a Ksh 100,000 monthly limit on a credit card, plan to spend only up to Ksh 30,000 (30%) balance on that card.

Cut your cost of living. The less you spend, the more you have in your budget to pay down debt and build your emergency fund. Even a short break from unnecessary expenses can add up to big savings.

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