Help! I am stuck in a cycle of Sh200,000 mobile loans

Create a realistic budget by tracking income and expenses, separating needs from wants, and cutting unnecessary costs.

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I earn a net monthly salary of Sh127,000 after statutory deductions, which includes a loan repayment of Sh32,000 and an education insurance payment of Sh3,000 for my child. Here’s a summary of my monthly expenses: Rent: Sh26,000; Utilities and WiFi: Sh6,500; Shopping: Sh20,000; Household daily expenses: Sh15,000; Transport, airtime and lunch: Sh15,000; Savings for my child: Sh15,000; Black tax (supporting family): Sh10,000.

The remaining amount usually goes towards paying off mobile loans and informal debts borrowed from friends. My mobile loan debt has accumulated to about Sh200,000. I find myself in a constant cycle of debt—paying off loans with each paycheck and then borrowing again to get through the month.

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Note: The results are not exact but very close to the actual.