`Micro-loans have left me financially distressed` Dear Auntie Agni, I read your answers to various queries in Eos and want to share my problem with you. I think your suggestion would help me.

I am working as a secondary school teacher in Khyber Pahkhtunkhwa`s (KP) education department. My salary hardly meets my expenses. As a result, I have to turn to microloan apps to meet my expenses. As you know, these loan apps have high mark-up rates and charge us a lot against the availed loans.

This is a huge burden for me every time I use one of these apps. Sometimes my entire salary goes into paying off these debts. This give-and-take situation has greatly disturbed my life. Kindly guide me as to how I can navigate this financial difficulty.

In a Bind Dear In a Bind, While I am not a financial adviser, and a professional can probably give you more pertinent advice, seeking help to improve your situation is always a good thing. I can only tell you what is common sense, and topping my list of steps that you can take is the `B word` that`s right, the word we all love to hate: budgeting.

You have to create a detailed budget that takes into account your monthly income and expenses. Try tracking your expenses (that means every little expense) for a few days to get a very clear picture of where your money is going. And when you look at it so minutely, you may be surprised by where it is going. This exercise will give you a very clear picture of your money and will also give you ideas about where you can and should cut back.

Also, now that you know what it feels like to be in a bind, consider creating an emergency fund.

This means that, as soon as youget paid, put aside a set amount of money every single month.

Any small amount that seems feasible will do and will help create a financial cushion for those unexpected expenses that crop up. That way, hopefully, you won`t have to rely on micro-loans.

Most importantly, you should think about creating new income sources. I am not sure about the government`s policy for employees doing other jobs, but this is an avenue that you should absolutely consider. Whether it is through tuition or through freelancing opportunities, you need additional income to reduce the need for loans.

At the same time, get in touch with your loan provider and see if you can negotiate favourable terms for repayment. Again, I am not sure what your terms are, but just talking to the loan provider might help. And it just might lead to easier terms for you.

Obviously, if you can get professional advice on how to tackle our financial problems, I would strongly suggest you take it.

These steps may not be easy and may feel like bitter medicine, but they will help you recover in the long run. Remember, it`s essential to take proactive steps to address your financial challenges. By carefully managing your finances and seeking support when needed, you can work towards a more stable and secure financial future.

Wishing you all the best.

Disclaimer: If you or someone you know is in crisis and/or feeling suicidal, please go to your nearest emergency room and seek medical help immediately.

Auntie will not reply privately to any query.

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