By SAMUEL OKELLO
I really agree with this statement but what I don't know is if this person actually met the devil and what the reason for the dance was. I mean why was this guy dancing with the devil on his back?
Nevertheless, I think the devil here meant something bad. The statement is true to the extent that one is never at peace when something is disturbing his mind.
There are many people who find themselves in debt, all round the month and they just canÌt get out.
What they are facing is like being locked in a room with a cat. Debt management is such a tricky issue that the person who is in it can be likened to a person dancing with the devil on the back.
That debt you have, that cat you have locked-horns with in the room is the devil on your back and won’t go away. The main problem is that a lot of people slip into debt without knowing.
In finance, we talk of bad debt and we fail to mention that there is also good debt. Many of us get into bad debt without knowing the difference between the two.
All debts are good but it is the usage that the borrower puts the money in after getting the debt that makes the debt bad or good.
To quote Shakespeare, "Neither a borrower nor a lender be, for loan oft loses both itself and friend."
His logic was that lending money to friends is risky, because hitching debt onto personal relationships can cause resentment and, in the case of default, loses the lender both his money and his friend.
It is a true advice that when you have money and a friend comes to borrow from you, you give what you are ready to lose.
At worst, you may end up losing both the money and the friendship.
That aside, we are not islands and so we cannot live entirely without debt and without lending others for you will also need them tomorrow. All it calls for is wisdom.
avoid more debts?
Borrowing or getting into debt is like a bad spirit; once you get hooked then you need divine intervention to stop.
It may take a lot of effort to overcome that spirit and temptation, because you will always see a possibility of making a kill out of the debt. You will want to borrow from Peter to pay James and Sally then once you get the cash you see another "opportunity". You end up losing what you borrowed and still have James, Peter and Sally on your shoulder
Don’t borrow money when you are not sure of what you want to do with the cash. Just like driving, you need to engage your mind before you engage the gear.
You may have the ability to borrow, but don’t accept the temptation unless you have a good plan of what to do with the cash.
Secondly, ensure you do your homework well before you go ahead to borrow.
You may want to borrow to grow farm watermelons, oranges or bananas, but find out first what it takes to do that business, the costs and the expected income.
Take time and talk to the people who have tried the same business and failed or succeeded, for they have more information.
Learn to say ‘NO’ to debt when you donÌt need it. Think of why you need to get into debt before you borrow.
How to get out of debt?
When you get the money, use it to do what you had wanted to do with it, donÌt divert its usage. Pay back the money religiously as previously agreed.
For those who cannot discipline themselves, get an automatic standing order arrangement from your bank or a check-off system. Do cost-benefit analysis before you get into debt; avoid temptation. Live within your means.
Keep it simple, have as few creditors as possible! Learn to consolidate your debts so that you have fewer debts that you can monitor closely.
—The writer works at the Central Bank of Kenya’s External Reserves Management Division.
