How your friends' 'help' keeping you in a debt trap

Debt can be a financial burden that slowly creeps up on you, making it harder to break free.

While it’s easy to assume you have things under control, certain behaviours indicate that you are getting deeper into debt rather than making progress in clearing it.

Best friends and digital loans often seem like lifesavers, but they can also be enablers that push you further into financial distress. Here are seven signs that you’re on a dangerous financial path.

1. You rely on your best friend for quick loans

While best friends offer emotional support, they often double as ‘emergency banks’ when you need quick cash.

If you find yourself frequently borrowing from your friends, not only are you straining relationships, but you’re also using one loan to cover another—an unhealthy cycle that signals worsening financial distress.

READ ALSO: 10 hard truths about debt every young person must learn

2. You’re using one loan to pay off another

A common red flag is when you take a new loan to pay off an existing one.

This cycle, known as ‘robbing Peter to pay Paul,’ only leads to more debt as you continue accumulating interest and fees.

Instead of reducing your financial burden, you’re prolonging and deepening it.

3. Your salary is already allocated to debt payments before you receive it

If your paycheck is already spent before you even receive it, you’re in a dangerous financial position.

When loan deductions and unpaid bills leave you with little to nothing for daily expenses, it means you’re living beyond your means and are likely to continue borrowing just to survive.

READ ALSO: Kenyan money laws you might be breaking everyday without realising

4. You regularly take mobile loans for non-essentials

Mobile loan apps provide quick access to cash, but if you’re using them to fund non-essential expenses like eating out, shopping, or entertainment, you are digging yourself into a financial hole.

These short-term loans often come with high-interest rates, making them a dangerous financial trap.

5. Debt collectors and late payment notices are piling up

Receiving frequent calls from debt collectors or late payment notices is a major sign that your debts are out of control.

Ignoring these notices does not make them go away—it only worsens the situation, potentially leading to legal action or damaged credit scores.

6. You have no savings and no emergency fund

If every penny you earn goes towards paying debt and none is set aside for emergencies or savings, you are financially vulnerable.

Without savings, any unexpected expense will likely push you into further borrowing, worsening the debt cycle.