Personal Finance: How To Pay Off Your HELB Loan

By Susan Gitonga

You will agree with me that having debt is one of the most stressful things in life. Even a debt as little as a 50 shillings Okoa Jahazi from Safaricom is enough to give you a sleepless night.

That said, I’d like to talk to you about HELB loans  today. I remember when I was just about to join University, my parents really wanted me to take a HELB Loan, and in as much as I did not understand all about it, I knew I would have to pay off the debt by myself once I started working.

With that knowledge I refused to take the loan and by God’s grace, my parents got promotions and were able to pay my very expensive degree programme until the end, and for that I’m grateful.

But this is just my story and some of you might not have had a choice, other than to take the HELB Loan, whether you liked it or not.

With that in mind, I’d like to share with you  how you can easily pay off your Loan and live a life of freedom.

1.Get a Job, and Multiple Jobs If You Can

The Government gives you a grace period of 2 years before they can come after you to pay your debt. That said, you need to get yourself a job. If you are still in University, get a weekend job and set aside the money you get for HELB Loan repayment.

If you have graduated, this is the time to work hard and save a lot of money to pay off the loan. If you are in your twenties, you do not have responsibilities and expectations from people.

The mistake I find with  most young people is their rush to upgrade their lifestyle. Most people don’t actually expect a fresh graduate to have tons of money to spend. That said, live a humble and simple life as you pay off your loan.

Therefore, get yourself a job and hustle as hard as you can. Work during the day and have a side hustle at night. You cannot afford to sleep in your twenties if you have a loan because as the years go by, you will have more responsibilities demanding your attention.

One of my University classmates was the definition of a real hustler. This guy would work during the day in one of his businesses (because we took evening classes). After class at night, he was working as a DJ and still had a kinyozi and Smokies Business running.

He did not take a HELB Loan but was able to pay his University Fees from the first coin to the last!

This is the time to make wise choices, don’t worry about what people will think because of how hard you are working. Rather, purpose to free yourself from your loan.

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2. Make Multiple Debt payments A Month

We are living in the digital era, and luckily, you can pay off your HELB Loan via MPESA. A good tip is to make many payments in a month and remain consistent. If you are determined to clear off your loan, you must focus and pay at least every month to ensure that it gets smaller.

That said, it is advisable to keep making multiple payments every now and then.Deny yourself of luxuries and other money wasters.

The least amount you can pay for your HELB is Kshs 500 and every amount counts, so I encourage you to pay as frequently as you can.

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Those are my tips. Have you taken a HELB Loan? How are you paying it off? Kindly leave us a comment below.Susan is a Communications Officer at Career Point Kenya. Email: susan@www.careerpointkenya.co.ke