First: Do Not Panic — and Do Not Hide
The worst thing you can do when you cannot repay a loan is to avoid your lender. Silence destroys trust and closes doors.
A Step-by-Step Approach
1. Assess your true position
Write down every debt: who, how much, interest rate, due date. You cannot solve a problem you have not measured.
2. Review your cash flow
How much money genuinely comes in each month? How much goes out to essentials? The difference is what you can offer to repay.
3. Contact your lender early
Before you miss a payment, talk to your lender. Explain the situation honestly. Ask about restructuring, refinancing, or a grace period.
4. Negotiate a realistic plan
Propose a repayment schedule you can actually keep. A smaller amount paid consistently beats a larger amount paid once and then defaulted.
5. Get support
Mwangazabiz's Debt Clinic helps borrowers and lenders find practical paths toward recovery — restoring relationships, businesses and livelihoods.