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Broke man

I have three Sacco loans, should I sell my car?

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Before freeing up your cash flow, have clear goals that you want for your liquidity needs and investments.

Photo credit: Shutterstock
Simon Mburu

By  Simon Mburu

Contributor

My name is Alex. I have a net salary of Sh59,000 and car running allowance of Sh20,000. I am servicing loans as follows:
Total Sacco loan - 1,288,000.

Loan 1: Sh451,000 (monthly deduction of 12,515) - due to clear on March 2028
Loan 2: Sh655,000 (monthly deduction of 16,428) - due to clear on Nov 2028
Loan 3: Sh182,000 (monthly deduction of 12,798) - due to clear in Dec 2025
My current Sacco deposit is 465,000 and share capital is Sh31,000.
Monthly contribution:
a) Sh5,000 towards my Sacco deposit and Sh2,000 for my child account and Sh100 for Sacco share capital.
b) I also contribute Sh5,000 towards my child education policy.
Deductions towards loan:
1. Sacco Loan - Sh41,741
2. Helb loan - Sh3,000 (due to clear on August 2024)
My main monthly expenditure:
Food - 6,000
Fuel - 14,000.
Is there a way I can repay these loans faster? How do I budget my money for better liquidity and investment?

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