Is it possible for one not to borrow? It's a yes and no answer for me but I've spoken with people who either believe it's possible not to borrow and some who believe they just have to borrow to make ends meet.
As an adult, I believe that sometimes in life, there comes challenges that may go way above ones means, and in situations like that, they may need to either borrow funds or ask friends and family members for help but in that case also, some people are very shy to ask help from people because of the aftermath and people's reaction. So, they just go ahead to borrow from banks, loan sharks, or cooperative societies.
I've been in difficult situations too where I needed a lot of money and couldn't bring myself to ask help from my friends or siblings.
I was going through serious financial crisis that was born out of making unhealthy financial decisions, without proper planning. I was also relocating and I needed a lot of money to add to what I have.
The only solution was to get the money from an online loan shark. The loan shark told me that I would pay back in one year and the interest rate was just 2.3 percent. I thought it was okay but I just didn't care because I needed the money badly by all means.
I collected four hundred thousand naira from them. Without thinking twice. I gave them photocopies of my national identity card, my work identity card, my passport photograph, and my salary code. All the documents makes it possible for them to deduct their money from my salary monthly without any disturbance.
I was so happy I got the money but I didn't know what I had signed up for. The first month came and they deducted forty nine thousand two hundred naira from my salary. I didn't know it's that much because a bonus came in for me at that time but few days later when I saw my payslip I discovered the amount they deducted and I screamed.
I reached out to the agent that processed the loan and asked why they deducted such an amount because going by that calculation for one year, the interest will be way above 2.3 percent. She said that their calculation is quite different from mine but there is nothing I could do any longer. I already collected the money and I've spent it on all I wanted to.
They kept deducting the money from my account every month for the number of months stated. It was a very difficult year for me because I couldn't do a lot of things for myself. I felt frustrated all through. I became so slim, I couldn't sleep well or eat well. I couldn't tell anyone what I was going through. The most painful part of it was that I paid almost six hundred thousand naira (#600,000)back, with interest almost two hundred thousand naira (#200,000). When I realized this, I regretted my rash decision of taking the loan without making adequate enquiry.
I just had to be strong, knowing fully well that it's not forever, It will end. I managed what I got and made sure I didn't go further into any other debt. At the end, I survived and I came out stronger.
The whole issue taught me not to ever take such loans without weighing the pros and cons.
Thanks for stopping by, I really appreciate you. Please, let me know what you think about this in the comments.
This is my response to Hive learners community weekly featured contents on the topic: The Bad Loan
