What Loan Apps Don’t Tell You About Their Terms
Before you borrow out of desperation, read this. It could save you from months of regret.
Hello friends,
It's been a while here.
I'm sorry I haven't been as active as I wanted, but this period is very busy for me.
Currently wrapping up my time as an undergrad, and it has made me a bit diverted from finance writing.
Me on Tuesday.
With my final exams almost here, my lecture notes are like that jealous girlfriend who I must not ignore for a second, and deadlines for conducting the analysis for my project are approaching like the second coming of Christ. This has not made me as dedicated to finance writing as I wanted.
But bear with me.
Like I said earlier, I'm working towards making this a daily newsletter, and I'll commence that after this pressure has been removed.
But before I sign off today, let me say this:
Pls, as much as you can, don't borrow money; especially personal loans for food, clothes, parties, or the likes.
And if you must borrow, pls be faithful in paying back. Don't make it a habit to stack up debts.
It's impossible to get ahead financially, no matter your income, if you make it a habit stacking up personal loans in one form or the other.
And pls avoid loan apps like it's a plague... Okash, Palmpay, Fairmoney, etc.
In their popular ads, Okash says “borrow ₦100,000 and repay ₦100,400,” but what they're not telling you is that that ₦400 is the daily interest on the amount borrowed.
You're paying these interests daily on those amounts.
This means if you borrow ₦100,000, after 30 days you now owe an extra ₦12,000 on top of the original ₦100,000.
And to make matters worse, if you default in paying your loans, you'll pay a default fee which is also calculated daily... and before you know it, just the interest you'll pay will be more than the original ₦100,000.
You're better off signing a contract with the devil - no lies - than becoming entangled with these loan apps, no matter how good they portray themselves to be.
Just avoid them. And if you know you're owing them, try to pay up as soon as you can. The era of defaulting without facing any consequences is soon coming to an end. (I'll speak on this soon)
Wishing you financial prosperity.
Till I write again.
Yours,
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Have a nice day.