Borrowing and Debt Management
Making Smart Choices for Financial Growth and Freedom
Introduction
Borrowing is a normal part of financial life whether to study, start a business, or handle emergencies. But poor borrowing decisions can lead to stress, dependence, and lost opportunities.
This module will help young people understand how to use debt wisely, avoid traps, and plan for a debt-free future.
Objectives By the end of this module, learners will be able to:
- Explain the difference between borrowing and debt.
- Distinguish between good and bad debt.
- Make informed borrowing decisions.
- Manage and repay debt effectively.
- Teach students responsible borrowing habits.
Section 1: Understanding Borrowing
- Borrowing means obtaining money or value now with the promise to repay later, usually with interest.
- Borrowing can come from:
- Banks and microfinance institutions.
- Digital lending apps and credit cards.
- Family, friends, or cooperatives.
Key Principle: Borrowing is not income; it is a future expense.
Section 2: Good Debt vs. Bad Debt
| Type | Description | Example | Outcome |
|---|---|---|---|
| Good Debt | Used to buy or create assets that appreciate or generate income. | Student loan, business capital, home mortgage | Builds wealth and opportunity |
| Bad Debt | Used for consumption or non-essential items. | Credit for parties, clothes, luxury phones | Reduces wealth, causes stress |
Rule of Thumb: If the borrowed money will grow your income or skills, it’s likely good debt.
Section 3: Smart Borrowing Decisions
Before taking a loan, ask:
- Purpose – Is this a need or a want?
- Repayment Plan – How and when will I pay it back?
- Affordability – Can I repay comfortably without missing essentials?
- Interest Rate – What’s the total cost of borrowing?
- Alternative – Can I save or delay instead?
Safe Borrowing Formula:
Total monthly loan payments ≤ 30–40% of monthly income.
Section 4: Managing and Repaying Debt
- List All Debts: Include lender, amount, interest, and due dates.
- Prioritize Payments:
- High-interest debts first (Avalanche Method).
- Smallest debts first (Snowball Method).
- Automate Payments: Reduce missed deadlines.
- Avoid New Debt: Don’t borrow to repay another loan.
- Negotiate: If struggling, talk to lenders early for extensions or lower rates.
Section 5: Avoiding Debt Traps
- Say no to impulse borrowing.
- Be wary of online loan apps with hidden charges.
- Avoid using debt for lifestyle inflation.
- Build an emergency fund to handle crises without borrowing.
- Use credit cards responsibly—pay full balances monthly.
Section 6: Building a Positive Credit Profile
Good credit opens doors to low-interest loans and better opportunities.
Steps to build credit:
- Pay on time.
- Keep balances low.
- Borrow only what you can repay.
- Review your credit report regularly.
Section 7: Teaching Borrowing and Debt to Students
Activities for KAFI Clubs and schools:
- Role Play: “Borrower vs. Lender” to explore fair borrowing.
- Needs vs. Wants Game: Identify when borrowing is necessary.
- Debt Diary Exercise: Track sample loans and repayments.
- Storytelling: Discuss local examples of debt success or failure.
Section 8: Case Studies
- Good Debt Example:
Aisha borrowed to start a tailoring business, repaid in 8 months, and grew her income. - Debt Trap Example:
Tunde borrowed for luxury spending, defaulted, and lost credit trust. - Debt Recovery Example:
Lina used the avalanche method to clear multiple loans and regain stability.
Key Takeaways
- Borrow for growth, not consumption.
- Always have a repayment plan before borrowing.
- Avoid high-interest or unregulated loans.
- Manage credit responsibly to build financial freedom.
- Teach others through school and community programs.
Join KAFI Community
JAIRUS MAKOKHA MAYIKUVA
ReplyDeleteFROM KENYA
• Borrowing means obtaining money or value now with the promise to repay later, usually with interest.
• Borrowing can come from:
o Banks and microfinance institutions.
o Digital lending apps and credit cards.
o Family, friends, or cooperatives
• Borrow for growth, not consumption.
• Always have a repayment plan before borrowing.
• Avoid high-interest or unregulated loans.
• Manage credit responsibly to build financial freedom.
• Teach others through school and community programs.
Joseph olinga ,Uganda,cohort5, groupE. In this module ,i have gained good understanding of the art of borrowing.as young people ,we must make smart borrowing decisions such as what purpose we want the funds for and familiarise ourselves with repayment plan and affordability.final have learnt that good credit opens ways for low interest loans and better opportunities.
DeleteMellen otieno
DeleteCohort 6
Batch B
Group j
Financial literacy help one understand smarter decisions making while borrowing and taking loans
Alinafe Mponda from Malawi
ReplyDeleteBorrowing is an essential part of financial life that allows people to access money or resources now with the promise to repay later, usually with interest. It can come from banks, microfinance institutions, digital lending apps, family or cooperatives. However, it is important to remember that borrowing is not income it is a future expense. Therefore, one must always borrow wisely and only for meaningful purposes that contribute to personal or economic growth.
There is a clear difference between good debt and bad debt. Good debt is used for productive purposes like education, business or home investment, as it creates wealth and long-term benefits. On the other hand, bad debt is used for consumption or non-essential items such as luxury goods or entertainment, which often leads to financial stress. The golden rule is that if borrowing helps grow your income or skills, it can be considered good debt.
Making smart borrowing decisions involves assessing the purpose of the loan, planning repayment, understanding affordability, and comparing interest rates. One should ensure that total monthly loan payments do not exceed 30–40% of income. Responsible borrowers should also consider saving as an alternative to borrowing when possible. Managing debt effectively requires listing all debts, prioritizing payments, automating repayments and avoiding new loans until old ones are cleared.
Avoiding debt traps is crucial for financial stability. This includes staying away from impulsive borrowing, unregulated loan apps
and using debt for lifestyle upgrades. Instead, individuals should build an emergency fund and manage credit cards wisely by paying full balances each month. Developing a positive credit profile through timely payments and low balances opens more opportunities for affordable borrowing in the future.
Finally, teaching responsible borrowing is vital for building financially aware communities. Through KAFI Clubs and school programs, learners can engage in activities like role plays, storytelling and tracking sample loans to understand how debt works. The key lessons are to borrow for growth, have a clear repayment plan, avoid high-interest loans, and promote responsible financial habits among others to achieve financial freedom.
Precious Helard Malawi
ReplyDeleteThis module teaches young people responsible borrowing and debt management. It explains good vs. bad debt, smart borrowing decisions, repayment strategies, and how to avoid debt traps. Learners gain skills to build good credit, manage loans wisely, and teach others financial discipline, promoting financial growth, independence, and long-term stability.
Wongani William Mvula
ReplyDeleteMalawi
I have learnt that debt is a tool which, if used wisely, can build a future, but if misused, can break it. The key is distinguishing good debt from bad. Good debt invests in an asset that grows in value or generates income, like a student loan for education or capital to start a business. Bad debt finances fleeting consumption, like a luxury item, which only depletes wealth. Prudent borrowing requires a clear repayment plan, an affordability check ensuring installments don't exceed 40% of income, and prioritizing high interest debts. The goal is to use credit as a strategic lever for financial growth and freedom, not as a trap for impulsive spending.
full name: Mark Injendi mutoro
ReplyDeleteCountry: Kenya
What I have learnt from this module: borrowing and debt management.
Borrowing means obtaining more overdue with the promise to repay later with interest.
When you Want to have smart borrowing decision,you should have a purpose,have repayment plan and have affordability.
How to manage debt , avoid new debt,list all debt and prioritize on payment.
Finally how to build credit is through paying on time, keep balance low,take what you can pay and review your credit repay.
NAME :Precious Joshua Mkomo
ReplyDeleteCOUNTRY: Malawi
I have learned that borrowing and debt management are crucial for financial growth and freedom. I understand the difference between good debt (investing in assets or income-generating activities) and bad debt (consumption or non-essential items). I have learned to make informed borrowing decisions by considering purpose, repayment plans, affordability and interest rates. I know how to manage and repay debt effectively by prioritizing payments, automating payments, and avoiding new debt. I'm committed to teaching others responsible borrowing habits and building a positive credit profile. By being debt-smart, I can achieve financial freedom and help others do the same.
Buhle Simon Mnguni
ReplyDeleteSouth Africa
The "Borrowing and Debt Management" module aims to help young people understand how to use debt wisely and plan for a debt-free future. It covers key concepts such as distinguishing between good and bad debt, making informed borrowing decisions, and managing debt effectively.
Good debt is used to buy or create assets that appreciate or generate income, such as student loans, business capital, or home mortgages. Bad debt, on the other hand, is used for consumption or non-essential items, such as credit for parties, clothes, or luxury phones.
The module provides a framework for smart borrowing decisions, including considering purpose, repayment plan, affordability, interest rate, and alternatives. It also offers strategies for managing and repaying debt, such as listing all debts, prioritizing payments, automating payments, and negotiating with lenders.
By the end of the module, learners will be able to explain the difference between borrowing and debt, distinguish between good and bad debt, make informed borrowing decisions, manage and repay debt effectively, and teach students responsible borrowing habits.
Mary Orah from Malawi,,,have learnt that building a good credit profile is essential for financial growth and access to better opportunities. To maintain good credit, it’s important to pay debts on time, borrow responsibly, and regularly review credit reports.
ReplyDeleteThrough the case studies, I understood that borrowing can be positive when used for productive purposes like Aisha’s tailoring business, but harmful when used for unnecessary spending like Tunde’s case. I also learnt that debt recovery is possible with discipline and smart repayment methods, as shown by Lina.
The key lesson is to borrow for growth, not for luxury, and to teach others—especially students—the importance of responsible borrowing and debt management through engaging activities like role plays and financial games.
Darwin Mkanya
ReplyDeleteMalawi
From this module, I have learnt that borrowing is not necessarily bad, but it must be done wisely and for the right reasons. Good debt is used to create income or build assets, while bad debt leads to waste and financial stress. Before borrowing, it’s important to consider the purpose, repayment plan, affordability, and interest rate. I have also learnt effective debt management strategies like prioritizing repayments, avoiding new debt, and negotiating with lenders when necessary. Building a positive credit profile through timely payments and responsible borrowing is key to financial freedom. Overall, the module taught me that smart borrowing supports growth, but careless debt can destroy financial stability.
Mohamed Babah Fofanah
ReplyDeleteFrom Sierra Leone
The presentation stated that borrowing is a common part of financial life but requires responsible management to avoid negative consequences. It distinguishes between good debt, which helps build assets or income, and bad debt, which funds non-essential consumption. Key principles include assessing the purpose, affordability, and repayment plan before borrowing, and ensuring monthly payments do not exceed 30-40% of income. Managing debt involves listing all obligations, prioritizing high-interest loans, automating payments, and avoiding new borrowing to repay existing debts. To prevent debt traps, individuals should avoid impulse borrowing, use credit responsibly, and build emergency funds. Building a positive credit profile by paying on time and keeping balances low is crucial. The module also highlights teaching strategies like role plays and exercises to promote responsible borrowing habits among students. Overall, the focus is on making informed borrowing decisions to achieve financial stability and a debt-free future.
Ebrima Touray
ReplyDeleteGambia
From this module, I learned that borrowing is not a bad thing if done wisely. It can help achieve goals like education, business, or housing.
I now understand the difference between good and bad debt, and the importance of borrowing only for productive purposes that increase income or value. The module taught me to plan before taking a loan, repay on time, and avoid borrowing for unnecessary spending.
I also learned strategies like the avalanche and snowball methods to manage and repay debt effectively. Most importantly, responsible borrowing builds credit, financial freedom, and sets a good example for others to follow.
Full name: Emmanuel Magombo
ReplyDeleteCountry: Malawi 🇲🇼
First of all Borrowing means obtaining money or value now with the promise to repay later, usually with interest.
Borrowing can come from:
Banks and microfinance institutions.
Digital lending apps and credit cards.
Family, friends, or cooperatives.
Further more Avoiding debt traps is crucial for financial stability. This includes staying away from impulsive borrowing, unregulated loan apps
and using debt for lifestyle upgrades. Instead, individuals should build an emergency fund and manage credit cards wisely by paying full balances each month.
Bailor Jalloh
ReplyDeleteSierra Leone
In this module, I learnt the difference between borrowing and debt, their importance, and how to handle them effectively. I now understand that borrowing can be useful when it is done wisely and for productive purposes, while debt becomes a problem when it is mismanaged. I also learnt about bad debt, which refers to borrowing money for things that lose value quickly or do not generate income, such as luxury items or unnecessary expenses. Managing debt responsibly is key to maintaining financial stability and achieving long-term goals.
L
Cynthia Manjawira from Malawi Borrowing is a normal part of financial life, but it must be done wisely to avoid stress and debt traps. Good debt helps you grow like loans for education or business while bad debt only drains your money on non essentials. Before borrowing always know your purpose, repayment plan and whether you can truly afford it. Manage your debts by paying on time, avoiding new loans and using smart repayment methods. Responsible borrowing builds a strong credit record, financial freedom and sets a good example for others to follow.
ReplyDeleteJoy Ngum Ndalle
ReplyDeleteCameroon
I've learnt that if it is avoidable or delayable to get a loan, then it is wiser to go by that. Repayment options should be considered before taking a loan, usually good debt repayment percentages are between 30-40% of my monthly income. If the debt is to grow my income or skills is considered as a good debt as it will give me profits in the future.
Name: Adego Hillary
ReplyDeleteCountry: Kenya 🇰🇪
Summary:
This module taught me that borrowing is a normal part of financial life, but it must be done wisely to avoid stress and financial trouble. I learned that borrowing means using money now and repaying it later with interest, while debt is the obligation that results. Not all debt is bad — good debt helps build assets or income (like business loans or education), while bad debt is for non-essential spending that reduces wealth.
Before borrowing, it’s important to ask if the loan is necessary, affordable, and has a clear repayment plan. The safe rule is that loan payments should not exceed 30–40% of one’s income. Managing debt involves listing all debts, prioritizing payments, automating repayments, and avoiding new loans. Building a positive credit profile through timely payments and responsible borrowing can open future opportunities.
Finally, I learned that teaching others—especially students—about responsible borrowing helps create a financially disciplined community focused on growth and freedom.
Maimuna Simba
ReplyDeleteMalawi
On borrowing debt and management module,I have learnt that borrowing is not bad but you just need to have good borrowing habit.To make smart borrowing decisions one ,must have a purpose, repayment plan, affordability, interest rate and alternatives.
Additionally,to effectively manage debt and repayment,we need to make sure that we list all debts, prioritise payments,automate payment and negotiate.The module has also highlighted on how we can avoided vect traps and build positive credit profile which are crucial for everyone who is borrowing for business as well as for education.
I leaned that borrowing money is something people do often, and when done carefully, it can help with things like learning or starting a business. But if you borrow too much or not wisely, it can cause stress and stop you from achieving your goals. It's important to understand the difference between good debt, which helps you build wealth and earn more money, and bad debt, which is used for things you don’t really need. Borrowing smartly means thinking about why you need the money, whether you can afford to pay it back, how much interest you'll pay, and if there are better options. You should also make sure that all your loan payments together don’t take more than 30 to 40% of your income. Managing debt well involves writing down all your debts, paying what you can first, setting up automatic payments, not taking on more debt, and talking to lenders if needed. To avoid getting stuck in debt, don’t borrow on a whim, be careful with quick loans online, and always keep some money saved up for emergencies. Keeping a good credit record by paying on time and borrowing responsibly can open up more financial chances in the future. Teaching people, especially kids, about borrowing and debt through real-life experiences helps them learn how to handle money wisely and gain financial independence.
ReplyDeleteFrom Eswatini
ReplyDeleteI have learned that money borrowed is not supposed to be seen as income, but rather as a tool to grow and expand the business. I’ve realized that treating borrowed money like my own income can easily lead to misuse and financial problems in the future. As an entrepreneur, it’s important for me to use loans or borrowed funds wisely — investing them in areas that will bring returns or multiply the value of the business. This understanding has changed how I view debt; it’s not free money, but a responsibility that needs careful planning and discipline. Personally, I’ve come to see that using borrowed money for unnecessary things that don’t bring profit only puts more pressure on the business. Instead, I should focus on using it to create opportunities, generate income, and strengthen the financial stability of my venture.
Name: Nicholas Kachinga Emanimani
ReplyDeleteCountry: Kenya
Summary:
I have learned that borrowing can be helpful when used wisely, especially for education or business, but it becomes dangerous when used for unnecessary spending. It’s important to plan how to repay before taking any loan and to pay on time to build good credit. I also learned about methods like the avalanche and snowball approaches to manage and clear debts effectively. Avoiding bad loans, paying full credit card balances, and having an emergency fund help prevent debt traps. As a KAFI leader, I now understand how to teach others to borrow responsibly and use debt as a tool for growth, not stress.
Phalane TEBATSO CASCHNER from South Africa.
ReplyDeleteI have learnt that we must say no to impulse borrowing.And we need to avoid using debt for lifestyle inflation. Build a good profile by paying on time,borrowing what you can repay,Review your credit report regularly.
We need to borrow for growth,not consumption. Always have a repayment plan before borrowing.
**Name:** Precious Chichitike
ReplyDelete**Country:** Malawi
**Summary:**
From this module, I have learnt that borrowing is not bad in itself, but it must be done wisely and with a clear purpose. Borrowing means using money now with a promise to repay later, usually with interest, and it should never be mistaken for income. I have understood the difference between good debt and bad debt—good debt helps to create or grow income, such as borrowing for education or a business, while bad debt is used for unnecessary consumption that leads to financial stress. The module has taught me how to make smart borrowing decisions by considering the purpose, repayment plan, affordability, and total cost of the loan before committing to it.
I have also learnt practical ways to manage and repay debts effectively, such as listing all debts, prioritizing high-interest loans, automating payments, and avoiding taking new loans to settle old ones. The importance of negotiating with lenders when facing repayment challenges was also highlighted. I now understand the need to avoid debt traps caused by impulse borrowing, unregulated digital loans, and lifestyle borrowing. Additionally, maintaining a good credit record by paying on time and borrowing responsibly can help access better financial opportunities in the future.
Overall, this module has taught me that responsible borrowing and debt management are key to financial freedom. As a young leader in Malawi, I can now help others make informed borrowing decisions, build good credit habits, and avoid financial stress while promoting a culture of financial discipline and growth.
Tracy chipongoma
ReplyDeleteZambia
Borrowing is obtaining money or something of value with the view of paying back with interests.it is not an income but a future expense.
We have good and bad debt, good debt created assets and involves acquisation of skills e.g government school loans while bad debts are always involves consumption and non essential .
One key thing I've learnt is how to calculate safe borrowing and always borrow for growth
Makoabola Mathapholane
ReplyDeleteLesotho
Borrowing can help us grow or trap us in debt—it depends on how we use it. Borrowing means using money now and repaying it later with interest, so it’s a future expense, not income.
Good debt builds assets or income (like business or education loans). Bad debt funds wants and luxuries that don’t bring returns.
Before borrowing, ask: Do I need this? Can I repay it? What’s the cost? Keep total loan payments under 40% of your income.
To manage debt: list all loans, prioritize repayments, pay on time, and avoid borrowing to cover other debts. Build an emergency fund and use credit responsibly.
Key idea: Borrow to grow, not to impress. Smart borrowing and disciplined repayment lead to financial freedom.
Vincent Olwanda
ReplyDeleteKenya
Summary:
I’ve learnt that borrowing should be purposeful and strategic—used to build assets, not fund luxuries. Good debt grows income or skills, while bad debt causes stress. Smart borrowing involves assessing needs, repayment plans, and affordability. Managing debt requires prioritizing payments, avoiding new loans, and negotiating when necessary. Building a positive credit profile opens future opportunities. Teaching youth through role-play, games, and storytelling helps instill responsible habits. As a KAFI leader, I’ll guide others to borrow wisely, avoid traps, and achieve financial freedom.
Name: Priscilla Amour
ReplyDeleteSouth Sudan
Cohort 5 , batch A
Group A
I learned that borrowing is useful only when it creates long-term value, not just satisfies wants. Good debt builds income and opportunity, while bad debt drains finances. Responsible borrowing requires a clear purpose, repayment plan, and discipline. Managing debt means prioritizing payments, avoiding high-interest loans, and never borrowing to repay another debt.
KENNY BWALYA
ReplyDeleteFROM ZAMBIA
COHORT 5 BATCH B
GROUP F
DAY 6 MODULE 3
SUMMARY
Borrowing and debt management involves using credit responsibly and ensuring that any money borrowed is repaid on time without harming your financial stability. It starts with understanding the purpose of the loan, comparing lenders, and only borrowing what you can afford to repay. Good debt management includes keeping track of repayment dates, prioritizing high interest debts, and avoiding unnecessary borrowing. Entrepreneurs and individuals should also monitor their credit records, maintain a good repayment history, and build a plan to reduce debt over time. Effective borrowing and debt management help prevent financial stress, protect your credit reputation, and support long-term financial growth.
Sarah Benson
ReplyDeleteMalawi
Cohort 5 Batch A
Day 6 Module 3
Borrowing and Debt Management have learnt that borrowing is not income but a future expense that must be managed wisely. Good debt helps build assets, skills, or income, while bad debt is used for consumption and creates financial pressure. Before borrowing, it is important to consider the purpose, repayment plan, affordability, interest rate, and alternatives. I also learnt practical ways to manage and repay debt, such as prioritizing high interest loans, automating payments, avoiding new debt, and negotiating with lenders when necessary. The module taught me how to avoid debt traps, especially from impulse borrowing and high interest digital loans, and emphasized the importance of building a positive credit profile through timely payments and responsible borrowing. Overall, I now understand that smart borrowing supports financial growth, while poor borrowing habits lead to stress and lost opportunities.
RANUECK THENFORD
ReplyDeleteMalawi
Cohort 5, batch A
Group A
From this module, I have learnt that borrowing is a useful financial tool when used wisely, but it becomes dangerous when taken for the wrong reasons or without a clear repayment plan. I now understand the difference between good debt—used to build assets or improve skills—and bad debt, which is used for consumption and reduces long-term wealth. The module taught me how to make smart borrowing decisions by assessing the purpose of the loan, checking repayment ability, comparing interest rates, and ensuring monthly payments stay within 30–40% of income. I also learned effective debt-management techniques such as listing all debts, prioritizing payments using the avalanche or snowball method, automating repayments, and avoiding new loans while repaying existing ones. The module showed me how to avoid debt traps like impulse borrowing, hidden-fee loan apps, lifestyle spending, and overusing credit. I also learned the importance of building a good credit profile by paying on time, keeping balances low, and monitoring credit reports. Finally, the practical activities and case studies demonstrated how responsible borrowing can create opportunities, while poor borrowing habits can lead to stress, default, and long-term financial problems.
Mahlohonolo Futho from Lesotho
ReplyDeleteCohort 5
Batch A
Group B
From this module, I learnt that ome needs to understand the difference between “good debt” (that helps you grow or invest) and “bad debt” (that can trap you financially).
Learn how to borrow smartly — when it’s necessary, under favourable terms, with a clear repayment plan.how leaders should develop strategies for repayment to avoid falling into debt traps.Build and maintain good credit and financial reputation.
Educate others on using credit/loans responsibly so debt becomes a tool, not a burden.
Ngene Charles Chukwuka
ReplyDeleteNigeria
Cohort 5 (Group G)
Batch A
This module taught me that if it is avoidable to get a loan, then it is wiser to go by it, hence borrowing is a not a bad thing but borrowing for consumption and not for business that will bring profit to repay back the debt is bad
Repayment options should be considered before taking a loan, usually good debt repayment percentages are between 30-40% of my monthly income. If the debt is to grow my income or skills is considered as a good debt as it will give me profits in the future.
Meshack Muuo
ReplyDeleteKenya
Cohort 5 (Batch A)
Group C
From this module, I have learned that borrowing is not a bad thing by itself — the danger comes when we borrow without a plan. Borrowing simply means getting money now and promising to repay it later with interest, and it should always be treated as a future expense, not extra income. I now understand the difference between good debt and bad debt. Good debt is money borrowed to build assets or increase my income, like a business loan or school fees. Bad debt is borrowing for things that don’t add value, such as luxuries or lifestyle spending.
I also learned that before taking any loan, I should ask myself key questions: Do I really need this money? How will I repay it? Can I afford it? And what is the total cost of the loan? Managing debt well requires listing all debts, prioritizing repayments, automating payments, and avoiding borrowing to pay another loan. The module also taught me the importance of avoiding debt traps like impulse borrowing, hidden charges from loan apps, and using credit for unnecessary spending.
Finally, I learned that building a good credit profile starts with paying on time, keeping balances low, and borrowing responsibly. As a financial literacy leader, I can teach students using role plays, needs vs. wants exercises, and case studies. Overall, the main lesson is simple: borrow for growth, borrow with discipline, and always have a repayment plan.
Lonjezo Banda
ReplyDeleteMalawi
Cohort 5, batch A
Group A
From this module I have learnt that borrowing gives you money now but creates a future obligation, so financial literacy helps you decide when and how to borrow wisely. Good debt builds your future like loans for business or education, while bad debt drains your income and creates stress. Before taking any loan, it is important to check the purpose, my ability to repay,repayment plan, affordability, and interest rate. Smart money management means avoiding unnecessary loans, paying on time, and keeping debt within safe limits. Good borrowing can grow a business while careless borrowing leads to debt traps. This clarifies that responsible borrowing is a key part of financial literacy and a big factor in achieving financial stability and freedom.
Funny chapalapata
ReplyDeleteMalawi
Cohort 5(group E)
Batch B
This module has emphasized that borrowing is not wrong but an individual must know the purpose why he or she is borrowing and a realistic repayment plan to clear the debt.
It also stipulated the good debt whereby an individual will borrow money for essentials that will promote growth and bad debt that is directed to non essentials as a result falling into debt trap.
An individual must develop discipline in borrowing and managing credits to build a positive credit profile and at the same time avoiding falling into debt trap.
As a financial literacy ambassador teaching and inspiring students about borrowing and debt management is very importance in helping them manage credit responsibly to build financial freedom.
Bully Fofana
ReplyDeleteThe Gambia
Group A, Batch A
Cohort 5
I learned that borrowing can help a business grow, but it has to be done responsibly. Good debt management means understanding the cost of loans, paying on time and borrowing only what you can afford to repay. It also involves comparing lenders, tracking all debts and planning repayment to avoid cash flow problems. The lesson showed that when debt is managed well, it supports business growth, but when it’s ignored, it can create financial pressure.
Sanusi Garba mabera
ReplyDeleteNigeria
Cohort 5 Batch B
Day 6 module 3
From this module, I learned that borrowing is not a bad thing, but it must be done with wisdom and discipline. I now understand that borrowing is not income, but a future expense that must be repaid. The module taught me the difference between good debt, which helps you grow—like borrowing for education or business—and bad debt, which is for things that don’t add value. I also learned to always check my purpose for borrowing, my repayment plan, affordability, and the interest rate before taking any loan. Managing debt well means listing all debts, paying on time, avoiding new loans, and staying away from quick online loan apps. Finally, I learned that responsible borrowing builds a good credit profile and gives financial freedom in the future.
Elizer Kanyika
ReplyDeleteCohort 5
Group A
Batch A
BORROWING AND DEBT MANAGEMENT Module 3.
From this module I have learnt that, borrowing is obtaining money or value now with the promise to repay later usually with interest. Borrowing is the expense that has been postponed to the future. I have also learnt that good debt is the one that is used to finance assets, skills and education. A bad debt is the one which that is used to luxurious.
Hope Malambo
ReplyDeleteZambia
Cohort 5
Batch A
Group B
I have learned that borrowing can be a useful financial tool when done wisely, but poor decisions can lead to stress and financial setbacks. It is important to distinguish between good debt, which builds wealth or skills, and bad debt, which is for consumption and reduces financial stability. Smart borrowing involves understanding the purpose, repayment plan, affordability, and interest rates, and keeping total loan payments within a manageable portion of income. Managing debt requires listing all obligations, prioritizing payments, avoiding new debt, and negotiating when necessary. Building a positive credit profile by paying on time and borrowing responsibly opens opportunities for low-interest loans. As a KAFI leader, I can teach students to borrow thoughtfully, manage debt effectively, and develop habits that lead to financial growth and freedom.
Diana khauya
ReplyDeleteMalawi
Cohort 5
Batch A
Group B
I have learnt that borrowing means obtaining money or value now with the promise to repay later, usually with interest. Debt can be good or bad depending on the usage . Good debt build wealth and opportunities while bad debt reduces wealth and causes stress. To build positive credit profile, you need to pay on time, keep balance low, borrow only what you can repay. We need manage credit responsibility to build financial freedom.
Rafique William Mponda
ReplyDeleteMalawi
Cohort 5 (Batch B)
Group F
In this module, I've learnt about borrowing and debt management. These two aspects can either be a tool to progress or a trap to years of financial struggle if not managed properly. The art of borrowing involves an agreement made with a lender to pay rather with a fixed interest. On the other hand, a debt is a commitment that is set after borrowing. Understanding whether a good or bad debt is vital for a leader to avoid running into a financial or debt trap. As a borrower, it is necessary to have an ultimate plan for the repayment methods of the debt acquired and only borrow for needs and not wants. We can manage our debt by using the 50/30/20 rule, which involves 50% on needs, 30% on wants and 20% on savings. Debt consolidation, snowball and avalanche are some of the tools that can be used to manage the payment of debts. For a leader, using the 50/30/20 rule or a savings habit can reduce the need for borrowing.
Margaret mwale
ReplyDeleteCohort 5
Batch A
Group C
I've learnt about borrowing and debt management. These two aspects can either be a tool to progress or a trap to years of financial struggle if not managed properly. The art of borrowing involves an agreement made with a lender to pay rather with a fixed interestAs a KAFI leader, I can teach students to borrow thoughtfully, manage debt effectively, and develop habits that lead to financial growth and freedom
Joanna Mongola from Malawi
ReplyDeleteCohort 5
Batch B
I have learned that borrowing means getting money now to repay later with interest or extra charges. Debt begins as borrowing but becomes problematic without careful planning. Good debt funds assets like education or business that increase future income, while bad debt supports wants that drain money. Before borrowing, assess if it’s necessary, plan repayment within 30–40% of income, compare costs, and consider saving instead. Manage debt by tracking amounts and rates, prioritizing high-interest repayments, and avoiding new loans to cover old ones. Teaching smart borrowing through engaging activities helps develop healthy financial habits for sustainable growth and freedom.
Charles Boimah Gray
ReplyDeleteLiberia
Cohort 5
Group A, Batch A
Module 3, Day 5
Understanding customers and market is basically about knowing who your customers are, theirs needs and wants and to be able to bring up strategies to boast your business base on knowing your customers. I learnt that a local market is customers in your surrounding, regional market is customers a state or region and global market is about reaching customers on digital platforms. Market research and analysis is good because it helps make informed decisions. I also learnt that knowing your audience, creating your customers persona, listening to customer feedbacks, knowing your competitors and what distinguishes you from them and by building a good customers relationship helps improve your business.
Rasool William Bennie
ReplyDeleteFrom Malawi
Cohort 5 (Batch A)
Group C
Learning to borrow wisely is an important part of financial life. The key is knowing the difference between "good debt," which is used to build something for your future like education or a business, and "bad debt," which is for spending on non-essentials. Before taking any loan, you must have a clear repayment plan, make sure the cost is affordable, and avoid high-interest traps. If you find yourself in debt, focus on paying it back strategically and talk to lenders if you're struggling. Ultimately, borrowing should help you grow and gain freedom, not create a cycle of stress.
Tumpale Mkandawire
ReplyDeleteMalawi
Cohort 5
Batch B (subgroup F)
Borrowing and debt management from this module I've learnt the importance of me as a future leader and entrepreneur to understand these concepts so that I can borrow responsibly and manage debts effectively. Of the few reasons people borrow is for day to day expenses, to buy a car or land. For educational purposes all of which are very important but it is also important to note that as an entrepreneur it's good to borrow within your capacity, borrow for things that have value and also to have a very good repay plan since any mistake on these would cost one's business to fall thereby leading to financial set back.
Lisah T Murewa
ReplyDeleteZimbabwe
Cohort 5
Batch A
Group B
Summary
This module teaches young people how to borrow wisely and manage debt responsibly. It explains the difference between borrowing and debt, and shows how good debt (used for education, business, or assets) builds wealth, while bad debt (used for consumption or lifestyle items) creates financial stress.Learners are guided to make smart borrowing decisions by considering purpose, affordability, repayment plans, interest rates and alternatives. The module also covers practical debt-management methods, including listing debts, prioritizing payments, avoiding new loans, automating repayments and negotiating with lenders.Finally, the module provides simple activities for teaching students about borrowing through role-plays, games and real-life examples.
NAME: SALIMU RAMADHANI JUMA
ReplyDeleteCOUNTRY: TANZANIA
COHORT 5 (GROUP F)
MODULE 3
SUMMARY:
Borrowing and debt management involve understanding when and how to borrow money responsibly, and having a clear plan to repay it. Entrepreneurs may borrow to grow their business, but they must ensure that loans are manageable and used for productive purposes.
Proper debt management includes timely repayments, avoiding high-interest loans, and keeping debt levels under control. It helps maintain a good credit score, reduces financial stress, and supports long-term business success. Responsible borrowing is a sign of good financial discipline.
Richard Okoth
ReplyDeleteKenya
Cohort 5
Batch B
Day 6- Module 3
summary
From this module, I have learned that borrowing can give you money immediately, but it also creates a responsibility to repay in the future. Financial literacy helps you understand when it is truly necessary to borrow and how to do it in a smart and responsible way. There is good debt, such as loans for business growth or education, which can improve your future. There is also bad debt, which drains your income, increases stress, and offers little or no long-term benefit.
Rophy Makokha Barasa
ReplyDeleteKenya
Cohort 5 Batch c
Borrowing is good if borrowed money is spend wisely.
Good debt results in investments.
Loans come from banks,family,microfinance ,apps.
Avoid debt traps
Mloiso Mathews Katete
ReplyDeleteMalawi
Cohort 5(Batch C Group J )
This module teaches young people how to borrow wisely and manage debt in a healthy, responsible way. It explains that borrowing is not income but a future expense, and helps learners understand the difference between good debt that builds opportunities—such as education or business capital—and bad debt that creates stress and financial setbacks. The module provides practical tools for making smart borrowing decisions, managing repayments, avoiding debt traps, and building a strong credit profile. Through stories, classroom activities, and real-life examples, it equips KAFI leaders to guide students in developing disciplined borrowing habits that support long-term financial freedom and growth.
Mercy Chunga cohort 5 batch C group J
ReplyDeleteI have learned that borrowing can be a useful tool for financial growth, but it requires smart decisions and responsible management. Understanding the difference between good debt, used for assets that appreciate or generate income, and bad debt, used for consumption or non-essential items, is crucial. Good debt includes borrowing for education, business capital, or a home mortgage, as these investments can increase earning potential or build wealth over time.
By making informed borrowing decisions, prioritizing debt repayment, and avoiding debt traps, individuals can build financial freedom and achieve their goals. This includes creating a repayment plan, automating payments, and negotiating with lenders when necessary. Building a positive credit profile is also essential, which involves paying bills on time and keeping balances low.
Responsible borrowing and debt management can help individuals achieve financial stability, invest in their future, and create a safety net for unexpected expenses.
Name: Lesley mutua
ReplyDeleteCountry; Kenya
Cohort 5 Batch C group L
From this module, I’ve learned that borrowing can be a powerful financial resource when handled responsibly, but it becomes risky when taken for unnecessary reasons or without a solid plan to repay. I now understand the distinction between productive debt—used for investments like education or income-generating assets—and harmful debt, which is spent on consumption and ultimately weakens financial stability. The module guided me on how to borrow wisely by evaluating why the loan is needed, assessing my ability to repay, comparing interest rates, and ensuring that loan repayments do not exceed 30–40% of my income.
I also learned practical ways to manage debt, such as listing all outstanding loans, choosing repayment strategies like the avalanche or snowball methods, setting up automatic payments, and avoiding taking on new debts before clearing the existing ones. The module highlighted common debt traps, including impulsive borrowing, loan apps with hidden charges, overspending, and misuse of credit.
Additionally, I discovered the value of maintaining a strong credit record by paying debts on time, keeping balances low, and reviewing credit reports regularly. Through hands-on exercises and real-life examples, I came to understand how responsible borrowing can open doors to financial growth, whereas poor borrowing habits can result in stress, missed payments, and long-term financial hardship.
Angela Mpala
ReplyDeleteZimbabwe 🇿🇼
Cohort 5 Batch C Group I
This module established that borrowing is a future expense used to obtain value now, and making smart borrowing decisions is critical for financial health. The key is to distinguish between Good Debt, which creates income or assets (e.g., business capital), and Bad Debt, which funds consumption (e.g., luxury items), while ensuring that total monthly loan payments are affordable, ideally below 30–40% of income. Effective debt management involves listing all debts and using methods like the Avalanche (high-interest first) or Snowball (smallest first) to prioritize repayment, combined with disciplined habits like avoiding new impulse borrowing and building an emergency fund to secure financial freedom.
Full Name: Jackson J. W Johnson
ReplyDeleteCountry: Republic of Liberia
Cohort: 5 (Batch C)
In this module, I learned that borrowing is not income but a future financial obligation, so it must be done wisely. Good debt helps build assets and increase income, while bad debt creates stress and reduces financial stability. Before taking a loan, it is important to check the purpose, interest rate, affordability, and repayment plan. I also learned strategies for managing debt such as listing all loans, using the avalanche or snowball methods, automating payments, and avoiding new debt. Building good credit requires discipline, timely payments, and responsible borrowing. Practical activities like role plays and debt diaries can help students understand borrowing better. Overall, smart borrowing and disciplined debt management lead to financial growth, freedom, and better opportunities.
Name: Gladys Disemba
ReplyDeleteCountry: Malawi
Cohort 5 (Group I)
Batch C
In summary
I have learned that borrowing and debt can be a powerful tool or a destructive force, depending on management. If you fail to pay back on time or borrow from numerous sources, you end up falling into a debt trap, which leads to a lack of freedom and a life of dependence. Good repayment of debt creates a positive credit profile, which opens doors to low-interest loans and good opportunities. Borrowing should be done to invest in long-term activities, such as buying assets or paying for education, rather than entertainment and luxury. Young leaders need to know this so that they can teach other young people and create a community of individuals with smart borrowing decisions.
Ropafadzo Abigail Tambara
ReplyDeleteZambia
Cohort 5
This module focuses on teaching the young people to make informed and good decisions on borrowing , debt management as challenges in financial growth . When one is educated and knows about how to prevent or move around an issue then the problem is already partly solved . Financial literacy is all about knowing different skills , one of the skills is borrowing , there is an emphasis on knowing good borrowing and bad borrowing , good dept and bad dept and these can help us to prevent bad debt and bad borrowing which is aimed and things that are unnecessary wants for luxury purposes not ones to promote growth. There is also emphasis on having a good financial plan when one borrows and also understanding of types of places where. To borrow and also their conditions when returning money eg loan from banks may require interests this helps one to make an informed d decision . To keep in line of one’s spending one should understand principles of income, where is comes from and which sources of income are reliable . This helps one not to borrow money that is more than 40 percent of your total earnings because as we have learnt there is a 30-20-50 rule that should not be disturbed in saving .
I have learn that having good credit makes it easier to access affordable loans and more opportunities. To build strong credit,
ReplyDeletemust borrow responsibly, pay back on time, and keep checking credit status
This comment has been removed by the author.
ReplyDeleteMy name is Jackson Mbazima, and I am from Zambia. I am part of the KAFI Financial Literacy Program, Cohort 5, Batch C. Through this module, I have learned that borrowing is an essential aspect of life that cannot always be avoided. People borrow money for various reasons, such as starting a business, paying school fees, or responding to emergencies.
ReplyDeleteBorrowing is defined as obtaining money to use now with a promise to repay it later, usually with interest. Understanding borrowing and developing good borrowing practices are crucial, as they enhance your financial management skills.
You can access borrowing through banks, mobile money lending apps, or from family and friends. It is important to differentiate between good debt and bad debt. Good debt is borrowing for wealth creation and personal growth, while bad debt is borrowing for consumption. Recognizing this distinction will help you make better financial decisions.
Debt must be managed well to avoid falling into traps that are difficult to escape. You can control and manage debt by borrowing for a specific purpose, having a solid repayment plan in place before borrowing, avoiding impulsive decisions, and keeping track of and prioritizing your debts. In conclusion, effective debt management is essential because it enables you to access money during emergencies, secure lower interest rates, and can serve as a pathway to wealth.
This comment has been removed by the author.
ReplyDeleteVictoria Penembe
ReplyDeleteMalawi
Cohort 5 Batch C
Borrowing and debt management become an area of promoting the making of wise choices among young people regarding when and how to take on debt in a responsible manner. Borrowing is not income, but rather an expense in the future, and a distinction needs to be made between good debt-used for asset development or income enhancement-and bad debt-used for non-essential consumption. The development of a smart borrowing mindset requires clearly identifying one's purpose, having a workable payback schedule, and ensuring loan repayments remain between 30-40% of income. Effective ways of managing debt include listing debt inventory, prioritizing, automating, shying away from new loans, and negotiating if that's an option. Heeding extra cautioning against total debt traps entails the avoidance of impulse borrowing, digital loan app craziness, and, of course, living with one's budget. Building good credit creates options for tomorrow: practice on-time payments and responsible borrowing. Through practical activities, KAFI leaders lead students in making informed choices and build financial discipline.
Mamabitsa Lintso
ReplyDeleteLesotho
Cohort 5 Batch C
Group M
I learnt that debt can be good if it is meant to build business or gain skill. I have to have a way of how am I going to pay that debt. A bad debt is a debt that can be borrowed for entertainment. I should avoid debt traps with some hidden charges. Teaching students that borrowing wisely can improve their lives
NAME: BAILACK JOICELINE JINDUI
ReplyDeleteCOUNTRY: CAMEROON
COMMENT: This course teaches us to borrow wisely, to avoid debt traps, and also to avoid high-interest loans, as it stresses that you may not have enough money to repay. it also teaches us to borrow for assets, not for consumption. Young leaders always fall into the trap on borrowing with no repayment plans and also because of their vast demands. It teaches us to be responsible borrowers
Zechariah kparsuah jr
ReplyDeleteLiberia
Cohort 5
I learned that borrowing money isn’t bad if you do it the right way. It’s important to only borrow what you can pay back and to have a clear plan for paying on time. Good credit comes from smart habits like paying bills on time and not borrowing too much. The fun activities, like role plays and games, helped me see how to explain borrowing and debt in ways that make sense to students. This module showed me that managing debt well can help people get better opportunities and avoid financial trouble. I’m excited to share these lessons with others so they can make smart money choices too.
Pascaria Musengya Muthiani
ReplyDeleteKenya
Cohort 5 Batch C Group J
Borrowing is obtaining money or valuable now with an agreement to pay later. There 2 types of debts good and bad debts. Borrowing to gain skills to improve your bargaining power or expanding business is good debt. Borrowing for shopping and luxury is bad debt. Before borrowing is good to ask yourself if it's need or want,the repayment plan, affordable, interest and if can delay or save. It's advisable to ensure your debt is below 30 percent of your monthly income. To manage debt; list all debt, their lenders interest period,begin with one with high interest,do not borrow to pay another loan,automate to avoid missed deadlines payments penalties and negotiate with lenders for better repayment if pressed. To avoid falling in debt traps, borrow when necessary, avoid online apps with hidden charges and have emergency fund to cater for unexpected needs. To maintain good credit score; pay on time, borrow what you can repay and review credit report oftnely. As KAFI leader when teaching students can apply; role plays of lender and borrower, discuss needs and wants to prioritize what to borrow,do debt diary exercises and use storytelling to show bad and good debts. In conclusion borrowing can be a tool for growth or stress depending on how it's used.
Name: Praise Chaona
ReplyDeleteCountry: Malawi
Cohort 5 batch C
I have learned that borrowing means getting money now with the promise to repay later with interest, and I must remember that it is not income but a future expense. I now understand the difference between good debt, which helps me grow wealth through education or business, and bad debt, which is used for non-essential spending and leads to financial stress. Before borrowing, I should always think about the purpose, repayment plan, affordability, interest costs, and whether I can wait or save instead. I must manage my debts well by prioritizing payments, avoiding new loans, and paying on time so that I build a positive credit profile. Overall, this module has taught me that smart borrowing supports financial freedom, while careless borrowing can destroy it b so I choose to borrow responsibly for growth and future opportunities.
Name: BRIAN CHIYANDA
ReplyDeleteCountry: ZAMBIA
MODULE 3
Cohort 5, Batch A
Group A
DAY 6
Borrowing and Dept Management
This module teaches young people responsible borrowing and debt management. It explains good vs. bad debt, smart borrowing decisions, repayment strategies, and how to avoid debt traps. how to manage and repay debt effectively by prioritizing payments, automating payments, and avoiding new debt.
Toka faith ziganubari
ReplyDeleteNigeria
Cohort 5
Group L
I learnt that before taking any loan, I must ask myself important questions like why I need it, how I will repay, whether I can afford it, and what the total cost will be. I also learnt that it is safer to keep my monthly loan payments within 30–40% of my income.
And I learned two types of debt
Good and bad one.
But to build a positive credit profile I must pay debts promptly, borrow responsibly, and review my credit report. Finally, I learnt simple ways to teach students about borrowing through activities like role-plays, needs-vs-wants games, and case studies that show the impact of good or bad borrowing.
NAME: PRECIOUS CRISPIN KAMOWA
ReplyDeleteCOHORT: 5
GROUP: P
BATCH: D
COUNTRY: MALAWI
Borrowing and debt management are critical aspects of personal and business finance, as they can significantly impact financial stability and growth. For individuals and entrepreneurs alike, understanding the terms and conditions of borrowing helps avoid excessive debt and fosters responsible financial behavior. Effective debt management involves creating a clear repayment plan, prioritizing high-interest debts, and maintaining open communication with lenders.
By managing debt wisely, one can leverage borrowing to invest in opportunities that contribute to long-term goals. Ultimately, mastering borrowing and debt management empowers individuals and businesses to navigate financial challenges, build creditworthiness, and achieve greater financial freedom.
Faith Abigael
ReplyDeletekenya
Cohort 5 Group P Batch D
Key Take Aways:
Debts are only good good if they are meant to grow a business.
I should avoid debt traps with some hidden charges.
Emilly Atieno Oyatta
ReplyDeleteKenya
Cohort 5
Batch D
Although borrowing is a regular aspect of financial life, it must be handled carefully to prevent stress and long-term financial issues. This session explains to young people the distinction between debt and borrowing, emphasizing that borrowing is a future expense rather than a source of income. Students investigate the differences between bad debt, which finances consumption and non-essential products, and good debt, which is utilized for business, education, or assets that increase in value. A clear goal, affordability assessments, repayment schedules, and an awareness of interest rates are all necessary for wise borrowing. Listing all debts, setting repayment priorities, automating payments, avoiding new loans, and negotiating with lenders as needed are all components of effective debt management. Additionally, financial pitfalls such as impulsive borrowing, hidden-fee lending applications, lifestyle inflation, and poor credit card habits are taught to young people.
Building a good credit profile through on-time payments, minimal balances, and responsible borrowing is another focus of the program. Role-playing, needs-versus-wants games, and debt journal exercises are examples of practical activities that instructors and KAFI Club leaders can use to assist students learn responsible borrowing. The practical consequences of prudent borrowing, bad debt behavior, and disciplined repayment plans are demonstrated through case studies. The main takeaway is straightforward: to create financial stability and empower others, borrow for growth, always plan repayment, stay away from high-risk loans, and adopt appropriate credit habits.
Francis Dennis Maudzu
ReplyDeleteMalawi
Cohort 5 (Group O)
Batch D
This module I have learnt that Borrowing means obtaining money From banks or family and friends with a promise of paying back. It can be good or bad according to how you are managing the money borrowed. Debts are supposed to be maintained and payed back on time to make the one borrowing you, help you again. In this process of borrowing, we must be alert by avoiding debt traps.
Kunda Ngosa
ReplyDeleteZambia
Cohort 5( Group P)
Batch D
Lesson: Borrow with a purpose. Debt should solve a real need or support a productive purpose not a temporary desire. Responsible borrowing begins with discipline.
Debt must fit within your income-
Monthly repayments should be manageable. A healthy rule is that debt repayments should not consume too much of your monthly income.
Pay on time to avoid penalties. Borrowing affects future opportunities -Good repayment habits build your creditworthiness making it easier to access better loans in the future.
Understand the terms before borrowing.
Borrowing is not income; it is a future expense.
Gabriel Vitumbiko Nyondo
ReplyDeleteMalawi
Cohort 5
Batch D
I have learnt that borrowing is obtaining money or value now with the promise to repay later, usually with interest. However, I have noted that It's essential to differentiate between good debt, which builds assets or income, and bad debt, which funds consumption or non essential items.
Good debt includes borrowing for education, business, or home mortgage, while bad debt includes credit for parties, clothes, or luxury phones. Before borrowing, consider the purpose, repayment plan, affordability, interest rate, and alternatives.
Also it's important to manage debt effectively by listing all debts, prioritizing payments, automating payments, and avoiding new debt. Build a positive credit profile by paying on time, keeping balances low, and reviewing credit reports regularly.
I have also noted that it's important to borrow for growth, not consumption. Always have a repayment plan while avoiding high interest or unregulated loans. It's also important to manage credit responsibly to build financial freedom while teaching others responsible borrowing habits.
Brian Mateli
ReplyDeleteKenya
Cohort 5, Batch D, Group N
I learned that good borrowing entails supporting things like education, business, and emergencies, but only when used wisely. Good debt builds assets, while bad debt creates stress. Smart borrowing requires a plan, affordability, and understanding interest. Managing debt means prioritizing payments, avoiding traps, and building good credit. Responsible borrowing leads to financial freedom.
Thandiwe Mtonga
ReplyDeleteZambia
Cohort 5
Batch D
Group R
Borrowing isn't income it's a future experience that has to be paid with interest.
Bad dept is used for consumption while good one is used to build assets. Managing debt is avoiding new ones before the last one Is payed, listing them and prioritizing payments.
The idea is to borrow smart ,repay fast and stay financially free.
Name: Joseph Freeman
ReplyDeleteCountry: Sierra Leone
Cohort: 5
Batch: D
Group: O
Summary: I've learned that borrowing can be a useful tool for financial growth, but it requires careful management to avoid debt traps. I've learned to distinguish between good debt (used for assets that appreciate or generate income) and bad debt (used for consumption or non-essential items).
I've also learned how to make smart borrowing decisions by considering purpose, repayment plans, affordability, interest rates, and alternatives. I've learned strategies for managing and repaying debt, including prioritizing payments, automating payments, and negotiating with lenders.
Some key takeaways include:
- Borrow for growth, not consumption
- Always have a repayment plan before borrowing
- Avoid high-interest or unregulated loans
- Manage credit responsibly to build financial freedom
I've learned how to teach others about responsible borrowing habits, including using role-play, games, and storytelling to illustrate key concepts.
Fifen Yayee Mefira, Cameroon , Cohort 5
ReplyDeleteBorrowing and debt management refer to the art of taking money or product to pay lager. The module teaches that the different between good and bad back is the management and young leaders must section
OLERILE PHILLIP
ReplyDeleteBOTSWANA 🇧🇼
COHORT 5 BATCH D group Q
Dhdhdhshe dhdhd dhdhd dusuwhr dusuwe dusud the rjsu djsu jsje djsud jejehe shrh dhdhrhr duf
OLERILE PHILLIP
ReplyDeleteBOTSWANA 🇧🇼
COHORT 5 BATCH D group Q
This module taught me that borrowing is not the enemy — poor borrowing choices are. I learned to see debt as a tool that can either build a future or quietly destroy one, depending on how intentionally we use it. The lessons drew a clear line between good debt that creates opportunities and bad debt that only feeds short-term desires. What stood out most was the discipline behind borrowing: knowing the purpose, calculating affordability, and planning repayment before taking the loan. I also learned practical strategies like the Avalanche and Snowball methods, the importance of avoiding online loan traps, and how consistent repayment builds a strong credit profile.This module reminded me that as leaders, we must model responsible borrowing.
Brima Kargbo - Sierra Leone 🇸🇱
ReplyDeleteCohort 5
Group N
Batch D
In this module, I am able to understood that borrowing can be positive when used for productive purposes like Aisha’s tailoring business, but harmful when used for unnecessary spending like Tunde’s case. I also learnt that debt recovery is possible with discipline and smart repayment methods, as shown by Lina.
Rahila Kwakwai Jimmy
ReplyDeleteNigeria
Cohort-5
Short summary- I learned to borrow responsible, and when you borrow money you manage it appropriately. Depts becomes harmful when you can't pay back.you can borrow to go to school, to do business or to buy a House.
Rahila Kwakwai Jimmy
ReplyDeleteNigeria
Cohort-5
Short summary- I learned to borrow responsible, and when you borrow money you manage it appropriately. Depts becomes harmful when you can't pay back.you can borrow to go to school, to do business or to buy a House.
Name: Daniel Deng Aruop Deng
ReplyDeleteCountry: South Sudan
KAFI HUB: Cohort 5
Batch D group O
Summary on
Borrowing and Debt Management
Borrowing can support education, business, or emergencies, but poor debt choices cause stress and setbacks.
This module taught me to distinguish good verses bad debt.
To make smart borrowing decisions, manage repayments, avoid traps, build credit, and educate others.
It empowering me to use debt wisely for financial growth, freedom, and long-term success.
Hezekial Marete
ReplyDeleteKenya
Cohort 5
SUMMARY
I have come to understand that borrowing is not inherently negative, but it must be approached with wisdom and clear purpose. Good debt is that which helps generate income or build valuable assets, while bad debt often results in waste and financial strain. Before taking a loan, it is essential to evaluate its purpose, repayment plan, affordability, and the interest rate involved.
I also learned practical debt management strategies such as prioritizing repayments, avoiding unnecessary new loans, and negotiating with lenders when challenges arise. Maintaining a positive credit profile through timely payments and responsible borrowing is crucial for achieving financial freedom. In summary, this module showed me that smart borrowing can drive growth, whereas careless debt has the power to undermine financial stability.
Name: fatuma juma
ReplyDeleteCountry: kenya
Cohort 6
Batch B
Group j
Borrowing is obtaining money now which is to be repaid later on interest.
While borrowing you should consider the good debts as they build wealth and also creates opportunity.
Bad debts can be stressful in repayment.
Things you should consider before taking loans are like:
- purpose ,the intention in which you need to use this funds
- repayment, ask yourself will i manage to pay back? If no avoid
- affordability,
- interest rate, the interest should not be that much.
Learn to manage debts and ny this you build a positive profile.
Name : MERCY KASAYA
ReplyDeleteCountry: Kenya
Cohort:6 Batch A
This topic explains how borrowing works and how to manage debt responsibly. It covers types of loans, interest rates, repayment plans, and strategies to avoid over-indebtedness, helping individuals and entrepreneurs maintain financial stability.
- Full Name: Sebabatso Makhetha
ReplyDelete- Country: South Africa
- Cohort: 6 (Batch B)
- Short Summary:
In this module I learned that how to use borrowing wisely and managing debt responsibly to achieve sustainable financial growth, and freedom. And how borrowing is like receiving money now with a promise to repay later, usually with interest, and that borrowed money is not income but a future obligation. I also learned the importance of being able to distinguish between good debt and bad debt. Good debt is used to build skills, assets, or income, such as education loans or business capital, and bad debt funds consumption and luxury items that reduce financial stability.
Name:Doreen Kajuju
ReplyDeleteCountry :Kenya
Cohort:6
Group: C (Curious minds)
Batch:A
From the Borrowing and Debt Management module, I have learnt that borrowing is not income but a future financial responsibility that must be handled with discipline and planning. I now understand the clear difference between good debt, which is used to build skills, assets, or income, and bad debt, which is used for consumption and leads to financial stress.
The module emphasized the importance of making smart borrowing decisions by evaluating the purpose of the loan, affordability, interest rates, repayment plans, and available alternatives. I also learnt practical methods of managing and repaying debt, such as listing all debts, prioritizing high-interest loans, automating payments, and avoiding borrowing to repay other loans.
Additionally, I gained knowledge on avoiding debt traps, especially from high-interest digital lending apps, and the importance of building a positive credit profile through timely repayment and responsible borrowing. As a financial literacy leader, I am now equipped to teach students and young people how to borrow responsibly and use debt as a tool for growth rather than a burden.
Full Name: Teddy Sikakena
ReplyDelete- Country: Zambia
- Cohort: 6
- Batch: A
Group E
Borrowing is an essential part of financial life that allows people to access money or resources now with the promise to repay later, usually with interest. It can come from banks, microfinance institutions, digital lending apps, family or cooperatives. However, it is important to remember that borrowing is not income it is a future expense. Therefore, one must always borrow wisely and only for meaningful purposes that contribute to personal or economic growth.
There is a clear difference between good debt and bad debt. Good debt is used for productive purposes like education, business or home investment, as it creates wealth and long-term benefits. On the other hand, bad debt is used for consumption or non-essential items such as luxury goods or entertainment, which often leads to financial stress. The golden rule is that if borrowing helps grow your income or skills, it can be considered good debt.
Making smart borrowing decisions involves assessing the purpose of the loan, planning repayment, understanding affordability, and comparing interest rates. One should ensure that total monthly loan payments do not exceed 30–40% of income. Responsible borrowers should also consider saving as an alternative to borrowing when possible. Managing debt effectively requires listing all debts, prioritizing payments, automating repayments and avoiding new loans until old ones are cleared.
Avoiding debt traps is crucial for financial stability. This includes staying away from impulsive borrowing, unregulated loan apps
and using debt for lifestyle upgrades. Instead, individuals should build an emergency fund and manage credit cards wisely by paying full balances each month. Developing a positive credit profile through timely payments and low balances opens more opportunities for affordable borrowing in the future.
Finally, teaching responsible borrowing is vital for building financially aware communities. Through KAFI Clubs and school programs, learners can engage in activities like role plays, storytelling and tracking sample loans to understand how debt works. The key lessons are to borrow for growth, have a clear repayment plan, avoid high-interest loans, and promote responsible financial habits among others to achieve financial freedom.
Name: Noragbai P Naimah
ReplyDeleteCountry: Liberia
Cohort 6 (Batch A)
Group C
SUMMARY OF WHAT I LEARNED
From this module, I learned that borrowing is a normal part of financial life, but it must be handled wisely to avoid stress and long-term problems. Borrowing is not income; it is a future responsibility that requires careful planning. I learned the clear difference between good debt and bad debt. Good debt helps build skills, income, or assets, such as education loans or business capital, while bad debt is used for non-essential consumption and weakens financial stability.
The module taught me to make smart borrowing decisions by considering the purpose of the loan, affordability, interest rates, and having a clear repayment plan before borrowing. I also learned practical strategies for managing and repaying debt, including prioritizing high-interest loans, automating payments, and avoiding new debt. Building a positive credit profile through timely repayment is essential for future opportunities. Overall, I learned that responsible borrowing supports growth and financial freedom, while poor borrowing choices can limit progress and opportunities.
NAME: MARIE ELLEN COLLEY
ReplyDeleteCOUNTRY THE GAMBIA
COHORT 6: (GROUP C)
BATCH A
SHORT SUMMARY ON BORROWING AND DEPT MANAGEMENT.
In this module I discovered that borrowing is part of our financial journey. But borrowing wisely is very crucial. You may borrow for different reasons but in all that be able to ask yourself the purpose, interest, how to pay back, your affordability to pay and which alternative you will use to pay. If you do not consider all these things it becomes stressful and you start to dependant to others.
Name: Brivin Muia
ReplyDeleteCountry: Kenya
Cohort:6
Batch: A
Short Summary:
We have several sources where we can borrow money from . it may include Banks, digital lenting apps and families or cooperatives.
As KAFI leaders we should having a good debt where it creates assets. We should avoid bad debt and debt traps. As KAFI leaders we should train others on borrowing and debt management
- Full Name: Tendaishe Mangena
ReplyDelete- Country: Zimbabwe
- Cohort: 6 Batch A Group E
- Short Summary: Borrowing and Debt Management
Borrowing is a normal part of financial life, but it must be done wisely to avoid stress and debt traps. Good debt helps you grow, like loans for education or business, while bad debt only drains your money on non-essentials.
Key Takeaways:
- Borrowing means obtaining money or value now with the promise to repay later, usually with interest.
- Good debt is used to buy or create assets that appreciate or generate income, while bad debt is used for consumption or non-essential items.
- Make informed borrowing decisions by considering purpose, repayment plan, affordability, interest rate, and alternatives.
- Manage debt effectively by listing all debts, prioritizing payments, automating payments, and avoiding new debt.
- Build a positive credit profile by paying on time, keeping balances low, and borrowing responsibly.
Name: Abariche Emelia
ReplyDeleteCountry: Ghana
Cohort: 6
Batch: A
Summary:
I have learnt that borrowing is a tool that can either create opportunities or financial stress, depending on how it is used. Good debt is used to build assets or income, while bad debt is for non-essential consumption. Making smart borrowing decisions involves assessing purpose, affordability, interest rates, and having a clear repayment plan. I also learnt effective debt management strategies, such as prioritizing payments, avoiding new unnecessary debt, and negotiating with lenders when needed. Building a positive credit profile and teaching responsible borrowing to students and communities are essential for financial growth and long-term freedom.
NAME:NIYIBITANGA STRATON
ReplyDeleteCOUNTRY:BURUNDI
COHORT:6
Borrowing is the most essential part of financial life whether for starting a business or for handling an emergency.
But it is very importantto make good decisions of borrowing because if it isnot well dine it leads to stress,dependence and faillure in general.this module helper ys ti acquire skills leading to distinguish borrowing and dept,distinguish betwewn good and bad dept,it also informed us of good borrowing decisions and enabled us with how to manage and repay dept effectively and teach students responsible borrowing habits.
Name : Ntsane Mosanteli
ReplyDeleteCountry : Lesotho🇱🇸
Cohort:6
Responsible borrowing requires a clear purpose, repayment plan, and discipline. Managing debt means prioritizing payments, avoiding high-interest loans, and never borrowing to repay another debt. I have also learnt practical ways to manage and repay debts effectively, such as listing all debts, prioritizing high-interest loans, automating payments, and avoiding taking new loans to settle old ones. The importance of negotiating with lenders when facing repayment challenges was also highlighted. I now understand the need to avoid debt traps caused by impulse borrowing, unregulated digital loans, and lifestyle borrowing.Responsible borrowing and debt management can help individuals achieve financial stability, invest in their future, and create a safety net for unexpected expenses.
Frankline Gor
ReplyDeleteKenya
Cohort 6 Batch A
We youths learn responsible borrowing and debt management. We get to know good and bad debt, smart borrowing decisions, repayment strategies, and how to avoid debt traps. We gain skills to build good credit, manage loans wisely, and teach others financial discipline, promoting financial growth, independence, and long-term stability. Borrowing should effectively build our wealth and skills but not open wide holes of debt. Responsible borrowing and debt management can help individuals achieve financial stability, invest in their future and great financial independence.
Full Name: Claytos Chimoto
ReplyDeleteCountry: Zimbabwe
Cohort: 6
Batch: A
Borrowing is an inevitable part of life which entrepreneurs need to invest and growth their businesses. It comes in form of formal and non-formal forms but if done impulsively can lead to debt traps and strain relationship. Borrowing should be done when there is a clear repayment plan to minimize financial ruin. Debt management should be done with wisdom to avoid bad debt that is, borrow for growth not consumption. Bad debts result in low credit score which result in gloomy future for young entrepreneurs. Borrowing responsibly result in financial management and freedom which result in healthy financial future.
Name: Christine Ndunge
ReplyDeleteCountry: Kenya
Cohort: 6
Batch: B
I have learned that borrowing should be done carefully because it is money you must repay in the future. Good debt helps entrepreneurs grow, such as for education or business, while bad debt causes stress and financial problems. Making a clear repayment plan, avoiding high-interest loans, and managing debt wisely helps build financial freedom.
Name: Jasper Opio
ReplyDeleteCountry: Uganda
Cohort 6 (KAFI GROUP A)
During this session on borrowing and debt management, I learned that not all debt is harmful, but mismanaged debt can quickly become a burden. I realized the importance of distinguishing between good debt, which can help grow my business or personal finances, and bad debt, which drains resources without generating value.
The module emphasized the need for careful planning before borrowing: assessing repayment capacity, understanding interest rates, and being aware of the terms and conditions. I also learned practical strategies for managing existing debt, such as prioritizing high interest loans, avoiding unnecessary borrowing, and keeping a clear record of all obligations.
Personally, this lesson reminded me that financial discipline and informed decisions are key to maintaining financial health. Borrowing is and opportunities.
Kodjo Nukunu Emmanuel ADOGLI
ReplyDeleteTogo
Cohort 6
Batch A
As young leaders, an effective management of debts and wise borrowing are crucial. This lesson develops ways to avoid debt traps, borrow wisely and knowing how to get out of debt traps. A key way to avoid debt traps is to save.
Audrey Mutale
ReplyDeleteZambia
Cohort 6
Batch A
I have learnt that there is good debt and bad debt. Good debt is when you use the money wisely and bad debt misusing the money.
One thing I must put in mind before borrowing is to know how I am going to pay back the money.
I am discouraged to borrow unnecessary and keep track of all the debts. Peer pressure and other negative things should not lead me to borrow.
Having a plan on how you're going to settle the debts like long term, short term must be priotized and in case you fail to pay talk to your lender.
Teach students how they can pay back debts and how bad debt is when not used properly.
Because when you borrow now what you remain with are expenses which is a debt trap.
Name : shamim chatama
ReplyDeleteCountry : Malawi
Cohort : 6
Batch. : B
Group. : I
Borrowing can support education, business, and emergencies, but only when managed wisely. The key is understanding that borrowing is a future obligation, not income. Good debt builds skills or generates income, while bad debt finances consumption and creates financial stress.
Smart borrowing requires clear purpose, affordability, and a solid repayment plan. Effective debt management includes tracking all debts, prioritizing repayments, avoiding impulse loans, and negotiating early when challenges arise. By building positive credit habits and avoiding debt traps, individuals can use borrowing as a tool for growth while protecting long-term financial freedom.
Name: Sheril Olal
ReplyDeleteCohort: 6
Batch: B
Group: H
I have learned that borrowing is a useful financial tool when used responsibly, but it can become a burden if mismanaged. Not all debt is bad—good debt helps build skills, assets, or income, while bad debt finances consumption and creates stress. I also learned the importance of borrowing with a clear purpose, understanding interest and repayment terms, and keeping loan payments affordable. Effective debt management, prioritizing repayments, avoiding debt traps, and building a positive credit profile supports long-term financial freedom. Overall, smart borrowing decisions empower individuals to grow financially rather than limit their opportunities.
Full Name: Owino Mercy Atieno
ReplyDeleteCountry: Kenya
Cohort:6
Borrowing is a future expense that involves obtaining money from banks , friends or mobile money apps with the promise of paying back with interest.
Smart borrowing decisions distinguish between good and bad debts.
Good debts create wealth by increasing assets or skills while bad debts are debts incurred by borrowing for luxury.
We cannot avoid debts but can manage and make informed decisions before and after borrowing.
Name: Lizzy Zizila
ReplyDeleteCountry: Zambia
Cohort: 6
Batch: A
I have learnt that before borrowing i have to make smart and informed decisions , i have to know if the loan is affordable, repayment plan, interest rate and accessbility. Borrowing is useful if the intention is to grow a business or assests.
Name: Christine Ndunge
ReplyDeleteCountry: Kenya
Cohort: 6
Batch: B
Topic: Borrowing & Debt Management
I have learned that borrowing should be done carefully because it is money that must be repaid in the future. Good debt helps you grow, such as loans for education or business, while bad debt is used for unnecessary spending and causes stress. Before borrowing, it is important to have a clear purpose, understand the interest, and make a realistic repayment plan. Managing debt well and avoiding loan traps helps build financial freedom.
Kevin Wamalwa Manyonge
ReplyDeleteKenya
Cohort6 Batch A
I have learnt that debt is a tool which, if used wisely, can build a future, but if misused, can break it. The key is distinguishing good debt from bad. Good debt invests in an asset that grows in value or generates income, like a student loan for education or capital to start a business. Bad debt finances fleeting consumption, like a luxury item, which only depletes wealth. Prudent borrowing requires a clear repayment plan, an affordability check ensuring installments don't exceed 40% of income, and prioritizing high interest debts. The goal is to use credit as a strategic lever for financial growth and freedom, not as a trap for impulsive spending.
Name : Ijeoma Joy Ezegbulam
ReplyDeleteCountry: Guinea
Cohort: 6 ( Batch A)
This Borrowing & Debt Management module focuses on helping young people make wise financial decisions. Here's what it teaches:
- The difference between good debt and bad debt.
- How to make smart borrowing decisions
- Repayment strategies and how to avoid debt traps
- Building good credit and managing loans responsibly
- Teaching others financial discipline
The goal is to promote financial growth, independence, and long-term stability.
Bora Rwarinda
ReplyDeleteUganda cohort 6 Batch A
From this module, I learnt that borrowing is not bad on its own, but how and why we borrow matters a lot. Borrowed money is not income, it is a responsibility that must be paid back in the future. As a social entrepreneur, I now clearly understand the difference between good debt and bad debt. Good debt helps build skills, businesses, or assets that can improve income, while bad debt is mainly for pleasure and can bring stress and hardship.
I also learnt the importance of thinking before borrowing by asking simple questions: why I need the loan, how I will repay it, and whether I can afford it without suffering. Managing debt well means keeping records, paying on time, avoiding unnecessary loans, and talking to lenders early when challenges come.
Most importantly, this lesson reminded me that responsible borrowing protects dignity and freedom. As a human-centered leader, I must use debt wisely and also teach young people in my community to borrow for growth, not for pressure or comparison. When debt is managed well, it becomes a tool for opportunity,
not a trap
PRINCESS OTUMANYE
ReplyDeleteUGANDA
COHORT 6
BATCH B
Borrowing is obtaining money with a promise to re. pay later. Good debt is one that is invested in assets which appreciate in value or generate income whereas bas debt is used for consumption or purchasing non-essential items. Before you take a loan, first know thr purpose, costs involved like interest rate, repayment capacity, or weigh an alternative. Total repayments shd not exceed 40%of your income. Managing debt repaymenta involves listing all your debts and priotozing them according to their interest rates or amount outstanding. Pay the most expensive debt first or the smallest debt first. Avoid debt traps and build a good credit history.
Always borrow for growth not consumption, avoid expensive debt and always have a repayment plan.
Simon Shadreck Justen
ReplyDeleteMalawi
Cohort 6
Batch A
This module taught me that borrowing is a normal financial tool but must be used wisely to avoid falling into debt traps. I learned the critical distinction between good debt, which is used to invest in income-generating assets like education, a business, or a home, and bad debt, which finances non-essential consumption and can lead to financial stress. Before taking a loan, it's essential to assess the purpose, affordability, repayment plan, and interest rates, ensuring total monthly payments stay below 30-40% of income. Effective debt management involves listing all debts, prioritizing repayments using methods like Avalanche or Snowball, and automating payments. To build a positive credit profile, I must pay on time, keep balances low, and borrow only what I can repay.
Juliet Mwatsaka
ReplyDeleteKenya
Cohort 6
Batch B
Key points
1. Borrowing is not income, it is a future experience.
2. Any borrowed money should grow income or skills to be called a good debt. Otherwise it will be a bad debt.
3. Should not borrow to repay another loan.
4. Building positive credit profile is essential since it opens doors to low interest loans and better opportunities.
5 . I can teach students this module by Role playing " Borrowers versus lenders" to explore fair borrowing.
Akem Aurelia Njang
ReplyDeleteCameroon
Cohort 6 B
Borrowing, when done right, can be a tool for growth, but when done carelessly, it becomes a burden. This module clarified that borrowing is not extra income; it is a future responsibility that must be handled with intention and discipline. The real difference between financial progress and financial stress lies in whether debt is used to build skills, assets, or income, or to fund temporary wants.
I learned to clearly separate good debt from bad debt and to ask the hard questions before borrowing: why am I borrowing, can I truly afford it, and how will I repay it without compromising my essentials? Managing debt requires honesty, planning, and consistency, racking all loans, prioritising repayment, avoiding new debt, and addressing challenges early.
Most importantly, this module reinforced my role as a financial literacy leader. It equips me to guide young people to make smart borrowing choices, avoid debt traps, and build positive credit habits. The core message is simple and powerful: debt should serve your growth, not control your future.