The risk of collecting a loan

[Axis]

Many people tend to collect loan either in a high amount or any little amount to sort an issue invest on a business or take care of physical and material needs. But why is connecting alone an risky plan. Don't get me wrong I I never say connecting alone is bad or illegal but you need to assess the risk factors with collecting a loan.

When collecting a loan you need to be mindful of what you choose as a collateral. Most times people tend to use their houses as a collateral but not liking the fact that if they do you feel in pain back the loan they can be homeless. And as we all know many people who have fell in pain back alone have been really frustrated and sometimes it can lead to suicide because taking too much always you can pay back the loan that even cause mental sickness.

I remember an example of experience that I noticed earlier a businessman collected a loan of 300 million naira in order to buy goods outside the country I'm so why important into the country using water transportation unfortunately they should go to rent and all the goals we are all drowned the man found in a challenge in pay back the money and as a result he lost his job and his house you can agree with me that that is really a horrible experience.

And so I want you to always examine the risks before a loan

 

[uptrendfinancialsignal]

There is absolutely no way you can escape risk. The way to manage the risk is what matters and that is what you must learn to do because if you are receiving loan or you are into business, risk is always attached. This is why risk management is a very important knowledge to process any time any day, it is going to help you in a great way to avert a lot of dangers in whatever you find yourself doing. I understand that there is a lot of risk in loan taking but you should also try as much as possible to minimise the risk or possibly boycott it if you have the knowledge to do so, because if you cannot manage risk, it will portend great danger in the future .

Another important aspect that I would like to point out is that whenever you are taking loan, you should take loan that you can afford to pay back because taking loan that will be the very difficult for you to make repayment would result in a very big risk because the interest will keep accumulating if you cannot pay on time and it will develop into a very big problem that you will not be able to handle.

 

[Augusta]

I agree with you when it comes to loan the risk I'd always very high and it is never a joke when you default and can't pay back your loan you can find yourself in a hole that will need you to pray hard to come off it.

The thing is that if one can avoid it, noone should always be going the route of getting a loan because pay back might be very difficult. if you can get money from your friends and family you can go ahead it will be helpful for you than just wanting to get a bank loan