Why is it always difficult to pay back loan?

[Chommyluv]

I always ask this question, because am wondering why do people or organization find it difficult to pay back loan.
Some persons who sells food stuff within my street has been continually being harassed by a micro finance bank where the had collected some amount of loan in order to promote their businesses and these loans are to be paid back on instalments weekly which they agreed but I noticed that one its the day for payment, you will see them running helter skelter looking for someone to borrow from in order to pay back.
Same thing happened to a company where I was working sometime back, my boss collected a car on loan from a commercial bank to pay some percentage every month but I used to marvel once its the date for payment my boss will keep giving an excuse.
Why do people find it difficult to pay back loan?

The answer to this question its not far fetched; it's because of greed and selfishness and not that they don't have the fund to pay back but their greediness is stopping them from fulfilling their own end of the bargain. I sometimes fall into this category too, I once borrowed money from my friend to pay back latter but reaching the month to pay back, i feel like holding back but i suppress the feelings.

 

[eojo2401]

Loan should be used for the enhancement of an existing business that is viable. But mistakes some people do made is to took a loan to start a business. Forgetting that the first period in every business may be challenging. If care is not taken, such borrower may find it difficult to repay the loan.

 

[Dekadet]

Most people don't have the discipline of money management, they won't pay back a loan even if they have the money.

some take loans but don't invest it all in the business as they use part of the loan for their extravagant live styles.

Imagine someone taking a loan in billions to fund a business then two weeks after the loan has been released to him, he buys a private jet then suddenly his home is not conducive for him anymore, he hops from hotel to hotel.

Tell me how can that kind of person pay back the loan when due?

 

[Chibson]

The main reason people find it very difficult to pay back loans is because they've not met their profit target. I also noticed this because there was one of my friends I lent some amount of money, so when the time of repayment game he was finding it difficult to pay back then I begin to wonder what could be the problem. Generally people find it difficult to repay a loan after borrowing.

 

[Ozigba Richard Lamai]

It is usually difficult to pay back loan because of the additional interest that is been added to every loan some loans attract interest every month and this will make it so difficult for the person who collected the loan to pay because as the interest of the loan keep accumulating it becomes so difficult for the lunar to pay the loan and sometimes the middle sides not even play at all and this will lead to conflict and problem between the loaner and the loanee

 

[Victor001]

This is really a major concern, people find it easier to get loan than to pay back loan, most times they guilt trip you till you feel the urge to forfeit the loan. In most cases it might not necessarily be their fault.thats why to avoid similar occurrence sign or make an agreement stating the effect or price to pay if the loan is not met. Business is business.