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Lifeline or trap? Should I take out a loan at 26pc interest to clear rent arrears and pay fees?

^{Published on 2024-12-14 00:40:47 - Business Daily Africa}
 

• I want to use this loan to pay off my rent arrears of Sh43,000, pay my son's Sh51,000 school fees (he is joining grade one and I want to pay a full year at a private school), pay my niece's fees arrears of Sh14,000, and buy three sheep for my mom at Sh8,000 to Sh11,000 each in the village.

The article from Business Daily Africa discusses the dilemma of whether to take out a loan with a high interest rate of 26% to pay for school fees. It outlines the financial implications of such a decision, highlighting the burden of high interest rates on future financial stability. The piece advises considering alternative funding options like scholarships, bursaries, or negotiating payment plans with educational institutions. It also emphasizes the importance of understanding the full cost of the loan, including interest over time, and suggests exploring lower interest rate loans or family contributions. The article concludes by recommending a thorough financial assessment and possibly consulting with a financial advisor before making such a significant financial commitment.

Read the Full Business Daily Africa Article at:
[ https://www.businessdailyafrica.com/bd/lifestyle/personal-finance/should-i-take-out-a-loan-at-26pc-interest-to-pay-fees-4856268 ]

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