CREDIT MANAGEMENT
How Does Debt
Affect Your Job
By Wasilwa Miriongi
I
f you look at the financial reports
from the banking institutions, Non-
Performing asset carries a very big
portion most of this is as a result of
debts carried by individuals or so called
unsecured loans. You will realize a general
aspect of non-performing loans taken from
this quote “Commercial banks operating
in Kenya collectively posted a 5.65% rise
in profit before tax to Sh81.2 Billion in
the six months to June 2016 compared to
Sh 76.9 Billion posted in June last year.
Despite the profits, the sector recorded an
8.4% increase in Non Performing loans to
Sh 190 Billion” quoting the central bank
governor.
Incurring Debts usually falls in the
following two categories
Unavoidable Debt
In certain instances, it is impossible for
individuals to avoid debt due to differing
circumstances. There are times when an
unexpected change causes difficulties in
paying off old debt commitments.
Avoidable Debt
For everyone that has accrued unavoidable
debts, there is likely to be 10 who are in
over their heads in debt that could have
been avoided. These are people who have
relied on credit cards or Mobile loans to
stretch their income a little further, but
over time with the help of excessive credit
card and Mobile loans interest rates and
Debt impacts on productivity and performance
because the fallacy that we should not bring our
problems to our workplace is unrealistic. We are
all human and we cannot stop ourselves from hav-
ing a lack of concentration in the workplace, when
we are inundated with bank calls for overdue ac-
counts. Companies can shirk the responsibility
as much as they wish, but the harsh realities exist
and unless they are willing participants to sup-
port their staff with this form of enlightenment,
they cannot expect to achieve their desired goals
and deliverables.
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late fee charges, found that they were
suddenly having difficulty keeping up
with all of their expenses. Many people
use credit or take mobile loans when they
don’t have cash available and don’t take
the time to consider how long it will take
to pay off that impulse purchase.
Carrying a lot of debt can wreak havoc
on one’s personal life, and it can also
have an impact on your work life. From
limiting the kinds of jobs one can accept
to influencing how their employer
views them, debt can create many kinds
of challenges in the workplace. Being
proactive about one’s debt can save them
from all kinds of hassles on the job, and
brighten their job prospects as well.
Many people worry that getting debt
advice or choosing a certain debt solution
will affect their job. They fear that having
a poor credit rating