WHERE DO YOU BORROW FROM?

 One of the least discussed topics is debt management. In a nation where resources are scarce it is inevitable to borrow to make ends meet. In fact some people borrow from more than one source. The key question that I want to pose is where do Ugandans borrow from? I may not have the answer but as a Financial Literacy Trainer it is my duty to prepare the community to practice responsibility when borrowing. Good borrowing practices are fundamental to a healthy economy. Last year we witnessed 2 financial institutions that were closed and this is at times caused by the bad borrowing practices.

Since debt is a major part of our lives it is important for a customer to take the necessary steps in choosing the right company to extend credit to them. I have witnessed a number of trainees in agony because they went to certain loan sharks who lent to them and when they failed to pay they take their valuable property. We are living in a society that desires instant loans but then the question to the customer is, have they taken due diligence before borrowing. Just like one has to go to a professional doctor to receive the right treatment or they may risk death, it is prudent that a potential borrower takes the necessary steps to find out whether the company that provides the credit is registered and regulated. More still how does this company treat customers. One has to visit the financial institution to make real assessment. Mystery shopping is allowed in banking. Today most lenders have websites and social media platforms where one can research about the company. Does the company have well trained staff who will explain the loan features well?

So as we seek to improve our financial fortunes the company where one seeks credit matters a great deal.

Phillip Kiryowa

Personal Finance Coach(CPC,CMA)

Advanced Empowerment Link

+256752615916

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