Why take a loan if you have no sure means of payment?

[Alexandoy]

I have been studying this problem of borrowing money because many people I know would borrow money for the reason that they need cash. Okay, that is understandable. But what I cannot understand is their propensity to borrow without thinking of the means of payment. So many have fallen into that trap. Worse for some, they had a collateral that the lender would forfeit. The most common collateral for a personal loan now is the cellphone because it is very easy to sell although the valuation by the lender is one-sided. An iPhone costing $1,000 would have a valuation of $200 only. This issue of borrowing with difficulty in paying is being looked at by our government but I don't think they can do anything about it. There are so many personal lenders here, they are the people who lend money but they are not registered lenders. They are also the loan sharks of today who charge 20% monthly interest (as of the latest I heard that loan sharks have cut down on the interest rate from 20% to just 10% in regards to the pandemic).

I pity those borrowers who lost their collateral to the lenders. But it is their fault because they did not think of the result of their borrowing.

 

[sincerem]

I never for once loved the idea of taking loan when I have no means to pay back. I do take loans no doubt, but the amount isn't high enough. I simply take little loan when emergency arrives especially when my funds have been used to lock in a crypto project for some duration of time. I don't past their repayment date before clearing my loan. I pay as soon as possible. At the moment, my credit score is high due to how fast I pay my outstanding loans. I don't borrow money unnecessarily, and I don't even like the idea, it occurs due to unexpected challenges of life.

 

[eldavis]

This issue of borrowing without having a sure way of paying back has become a common issue, there are so many persons who has fallen for this. I have seen cases where people borrow, when It's getting close to the time of payment, they would look for another place to borrow from again to pay back where they first borrowed from.

 

[Finger Geek]

I was discussing an issue that concerns all this apps that are borrowing people money in Nigeria. And I was saying that it is not possible to owe the apps loan and never pay the loan back because I believe they will report the borrower to the bureau which will stop the borrower from taking more loan for not settling his previous loan. But the person I was discussing with said that most of the companies are not registered with the government.

But I wonder how they can start that kind of business and will not involved the government and make there business registered. Because most people will collect the loan and never pay back.

I have seen some people that take the loans from many apps and says that they will not pay back there loan and having a rest of mind that nothing will happen.

But I believe that with time they will find a solution that will help the companies to secure there money. Unlike easy buy that have now found a way to lock any phone that is been bought in installments and has payment due. This will also happen with the loan apps soon. And it will be difficult to take a loan there without paying back.

 

[Kingsley]

This is what has landed many people into trouble, they go for loans without having plans on how to pay back those loans. Infact even some insensitive government also go for loans they know they can not pay back, Thus, plunging their citizens into More poverty. People fail to learn and know that there is a big different between wants and needs, they mix it up, needs are pressing wants and wants are necessities but not necessarily important things. So when we access loans it shouldn't be about wants but about need. Then when we make such plans on how to get loan we must also make plans on how to get it paid back.

The reason why people remain in debt is because most time they borrow and borrow without making any plans for repayment places, some many countries are in debt trap today because their leaders are not wise enough to make good use of the money they received as loan, rather they spend the loanin irrelevant projects and sometimes the money were embezzled and looted. And you will notice that the government of such country implementing laws that will siphon cash from her citizens through back charges.they lack insight.

 

[Abigael]

Borrowing money without a plan on how to pay back is really irresponsible of people. This is mostly because they just borrow out of need to have money rather than a planned want. You find that people borrow money for impulsive buying of clothes or anything they want for luxury. This is not a good thing for your financial health at all. I believe that all debts should be planned for. Otherwise, you will go through so much anxiety trying to pay back he loan.