The thought of the word "loan" is something that gets me mad, recalling where I would have been financially if not for the setbacks I have experienced because of loans. People have taken loans in the past, both for businesses and for other purposes, and we have seen how well it paid off for them.

Taking a loan to boost your business when you are sure of regular patronage is not a bad idea, especially if the loans are flexible and the interest rate is friendly.But there are some loans that we get that not only lead us to debt but are also capable of crashing our finances.

Some emergencies and unforseen circumstances can also happen that will cause us to default on our loan repayment, leading to prolonged debt and a continual rise in the amount we are to pay back.

Personally, I learned some hard lessons from my dad's lifestyle of taking loans while he was still in active service. On two occasions, he has taken huge capital loans, one to start a business that later failed and the other for reasons known to him. These loans were often deducted from his salaries, and the rest we got was never enough for the family at the time.

The business for which he took the loans didn't work, and we were living from hand to mouth for a good period of 3 years. My siblings had to drop out of school for that period since there were no finances to cover their tuition. From such experience, I was determined never to take a loan when I became an adult.

True to that resolution, I have since avoided taking a loan, for whatever reason it may be. The one occasion that became the mistake of my life was when my younger brother insisted on taking a loan on my behalf for some projects. I reminded him of the risk involved and how we have suffered in the past because of the same reason, but he was adamant and double sure that the project was not going to default.

I didn't take this particular loan directly; he had to take it in his own name, but with the notion that I would be the one to service the loan. Even though I have given him a strict warning that he has to be actively involved too, if there is any issue, we have to pay back the said amount.

Fast forward to when the project failed. My brothers felt so bad and didn't know how to approach me. Keeping the idea of servicing the loan to himself, the amount kept increasing. He spent all of his finances on the loan, but it was never enough.

Before I got to know about the situation, it was already becoming a police case, and you know just how much the police involvement in such a case a case will cost us.
The implications now were that I didn't only service the loans; I paid almost 4x what was borrowed, including seeking solutions to appease the financial agents from filing a case.

It ended really sour for me; financial wise, it crashed my piggyback savings, which were meant for some other purpose. It was as if my baskets were emptied and I was made to go hunting for fruits in a dessert. Enduring all of these financial drawbacks and the challenges of starting all over again wasn't an easy one.


Now I have used all of this experience to enlighten my other siblings about the benefits of starting up your own business with personal capital or a loan and finances that will not get you into trouble. All of our family members understood the dangers of taking loans, and no one would put anyone else in trouble for such acts because whatever affects a member of the family becomes a concern for everyone. I wouldn't want to see any of my siblings go to jail because of debts. That was the reason I had to exhaust my finances to settle the loan as at that time. Some hive tokens went into that loan repayment and I wasn't happy about it at all.

I only advice that if every you will take a loan let it be from family and friends and without interest. Moreso there is dignity in paying back as at when due and it is equally not proper to take a loan just to satisfy some cravings or keep up with the standard of your friends.