Most people find themselves in financial problems and to resolve it they look for a means of getting a loan, borrowing from family and friends and so on
Then one debt leads to another and then another creating this never-ending debt cycle
The problem could be as a result of poor personal financial practices which would be discussed later in the article.
Having the issue of debt could cause unnecessary stress and not only this, but it can also cause problems in relationships if repayment of the debt is delayed or cannot be met.
According to reports, nothing less than 150 loan apps have been approved by the federal government of Nigeria.
This shows the high demand for loans from as many Nigerians, not even caring about the high interest
These loan apps offer loans of any amount and may charge interest rates of more than 20% per month!
Taking Loans is not really a bad thing but what reason was the loan collected for. Would the loan be used to generate revenue? Is there a solid repayment plan in place? These are questions to ask yourself before taking loan
What are the reasons why people take loans and how to deal with it
CIRCUMSTANCE:
Due to some unforeseen circumstances, life may throw tantrums at us when we don’t expect. For instance, we may fall ill and we may need to go take loan for medical care cause the medical bills might be more than what we have in the bank account
Another such occurrence is a layoff. Job security is gradually becoming a myth as even the traditionally safe occupations like giant tech companies have seen massive retrenchment especially post-pandemic.
Another one is a layoff of your job, In the wake of the pandemic, job security is diminishing, challenging the notion even in traditionally secure fields such as giant tech companies, where significant layoffs have occurred.
Dealing with unforeseen circumstances
Financial experts recommend establishing an emergency savings account, even in times of prosperity and apparent stability. This dedicated fund serves as a financial safety net for unexpected situations that demand swift access to funds. By maintaining a substantial emergency fund, you may avoid the need for borrowing, or at the very least, only a small percentage would be necessary to address unforeseen circumstances.
