Lusaka, Zambia,
08
April
2025
|
11:28
Africa/Harare

TransUnion Africa Shares Seven Essential Tips to Help Zambians Avoid Unmanageable Debt

TransUnion Africa is committed to empowering Zambians with the knowledge and tools needed to manage their finances effectively and avoid falling into debt. This year's theme for Financial Literacy month in March was “Think Before You Follow: Safeguard Your Money.” This theme emphasised the importance of making informed financial decisions to protect one's financial future.

The findings from TransUnion Consumer Pulse Study for Q2 2024 revealed a slight improvement in credit access but a significant surge in credit demand. According to the study, consumer demand for credit increased, with 48% of respondents planning to seek new or refinance existing credit within the next year, an increase of 10 percentage points from 2023. While 96% of respondents considered access to credit and lending products important for achieving their financial goals, only 32% felt they had adequate access, a slight improvement from 30% the year before. Among those intending to apply for credit, 53% considered new personal loans, with Millennials and Gen X showing the most interest in this type of credit.

To help consumers navigate these financial challenges, Mildred Stephenson, Chief Executive Officer at TransUnion Zambia, offers the following tips to ensure individuals understand their options and make informed choices that can contribute to increased financial inclusion:

  1. Create a Budget: Track your income and expenses to understand where your money is going. This will help you identify areas where you can cut back and save more. It will also help you determine if you can afford repayments on any credit you might be applying for.
  2. Build an Emergency Fund: Set aside money for unexpected expenses. This can prevent you   from relying solely on credit during financial emergencies.
  3. Pay Bills on Time: Late payments can negatively impact your credit score. Set up reminders or automatic payments to ensure you never miss a due date.
  4. Use Credit Cards Responsibly: Use credit cards wisely and avoid carrying a balance from month to month whenever possible. Pay off your credit card balance in full each month to avoid interest charges.
  5. Avoid Unnecessary Debt: Only take on debt that is necessary and manageable. Before applying for new credit, consider whether it is essential and if you can afford the repayments.
  6. Monitor Your Credit Report: Regularly check your credit report to ensure there are no errors and to keep track of your credit score. This can help you identify and address any issues early on.
  7. Accessing your credit report: Your credit report is a crucial document that provides a summary of your personal financial history. Regularly checking your credit report helps you ensure the information is accurate and spot any signs of identity theft early

To obtain your credit report, you can:

  • Call TransUnion: At 0211 220 530/36/420500 or 0955985107/5307.
  • Email TransUnion: Send an email to CustomerCareZM@transunion.com 
  • Visit TransUnion at:  5th Floor, Sun Share Tower, Plot No. 15584 / 1, Katima Mulilo Road, Olympia, Lusaka, Zambia.

“We recognise the critical role financial literacy plays in empowering Zambians to make informed financial decisions. By understanding and improving credit health, managing debts responsibly and enabling a culture of informed financial choices, we can collectively build a more financially inclusive and resilient Zambia. At TransUnion, we are committed to providing the necessary tools and insights to support this journey towards financial empowerment.” concludes Stephenson.