Loans: A Wise Financial Decision When Used Responsibly

I've heard so many stories of people who got clobbered and brutalized because they couldn't repay loans. I've also witnessed a first hand experience where people got arrested and had their properties seized because they couldn't repay them on time. Everything in this life is like a coin with two sides, loans are no different. Loans can be a double-edged sword. On one hand, they help people during emergency cases, providing them with resources (money) to tackle emergencies. However, on the other hand, if not paid back at the right time, loans can turn into a financial disaster. There are so many loan apps out there, offering loan options with very little interest.

A few years ago, a friend took a loan from a loan app- fairmoney. Unfortunately, emergencies came rushing his way and he couldn't pay back the loan on time. One thing about these loans is that when not paid at the right time, they keep piling up and adding interest, becoming a financial burden. At first, it started with frequent calls. The calls started politely, but as each day passed, they became more violent with their words. Then, my friend decided to turn off his phone completely so they wouldn't reach out to him. What followed? I don't know how they did it, but they started sending messages to his friends (the people on his contact list.) It was when they sent the message to me that he decided to make a move. So, he took a loan from another loan app to pay up. This is a case study of how loans can be a burden.

As I mentioned earlier, taking loans is not all bad. It only becomes a financial disaster when we can’t pay back at the right time. I have never taken a loan from loan apps, or anywhere at all. Not because I think taking loans is bad, but because I have never been in a situation where I needed to borrow money. Despite never taking a loan myself, I have seen the positive impact they can have. My mom is a testament to the benefit of loans.

Some years back, my sister had just gained admission to a private university. Over here, private universities are crazily expensive. The school fees alone was nine hundred thousand naira. Not only did my parents pay the school fees, but they also paid some other little fees- like, hostel fees, acceptance fees, and some forms. Since they were not allowed to cook inside the school, my mom bought a lot of provisions for my sister. If my parents knew they’d spend that much, they would have probably prepared well, but it happened out of the blue. They had budgeted for another university, which was way less expensive, but at the last minute, my sister had to change universities to a private one. My parents spent all their savings on her admission.

A few weeks later, I also had issues with my admission and had to opt in for a program called JUPEB. Jupeb program is a national program where people participate and if they pass, they secure admission into 200 level. Pretty interesting, right? There’s a string attached to it- the Jupeb program is expensive. Very expensive. If you fail the national exam, the investment is lost. Just pack your bags and go back to your parent’s house. At that time, things were really tight, and my parents had to secure a loan. Unlike most people who take loans from all these loan apps, my mom got the loan from her cooperative society at work. This is one of the reasons I took the program seriously. While some of my mates were busy partying, I was indoors burning the late night candles. At the end of the program, I passed beautifully. My mom didn’t pay the loan back at once, she paid it monthly. Her experience is a testament to the benefits of loans.

Thanks for reading.