I have developed a system which keeps me out of debt. I will endeavor to explain how it works.
I have set up a separate savings account with Housing Finance Bank to handle unexpected expenses outside my normal budget. This account holds about 3 to 5 million shillings at any time and is separate from my salary account.
This account is mainly used for unplanned expenditures like car repairs, hospital bills, house repairs, etc. So instead of borrowing from a bank or money lender I simply borrow from myself at zero interest rate.
The amounts borrowed have to be paid back in the next month or two. Every month I send some small amount to this account to ensure I have immediate liquidity to deal with issues as they arise.
Where cash is required within a week or two I use STANLIB. When cash is required within a month plus I can liquidate the various insurance products I hold. Where cash is required within a year then I use my Treasury Bill portfolio. When cash is required within a decade plus I can liquidate the various property holdings.
With sufficient liquidity spread across different time periods I am able to avoid additional debt in my life.