{"id":1597,"date":"2023-03-09T22:13:25","date_gmt":"2023-03-09T21:13:25","guid":{"rendered":"https:\/\/questergate.com\/blog\/?p=1597"},"modified":"2024-05-17T15:51:39","modified_gmt":"2024-05-17T14:51:39","slug":"breaking-free-8-steps-to-escape-debt-from-loan-apps","status":"publish","type":"post","link":"https:\/\/questergate.com\/blog\/breaking-free-8-steps-to-escape-debt-from-loan-apps\/","title":{"rendered":"Breaking Free: 8 Steps to Escape Debt from Loan Apps"},"content":{"rendered":"\n\n

The problem with some loan app in Nigeria<\/strong><\/h1>\n\n\n\n

Debt is a major issue for many Nigerians, and loan apps can sometimes take advantage of those who are struggling financially.

These apps may offer quick and easy loans, but one of the main problems is the high-interest rates charged by these loan apps, which can be as high as 20-30% per month.

This makes it difficult for borrowers to keep up with repayments and can lead to a cycle of debt that is difficult to escape.<\/p>\n\n\n\n

Additionally, some loan apps have also been known to engage in aggressive debt collection practices, including calling and texting borrowers at all hours of the day and night.<\/p>\n\n\n\n

If you are dealing with debt from an unethical loan app, here are some steps that can help you become debt-free.<\/p>\n\n\n\n\n\n

Step 1: Do not pay debt with debt<\/strong><\/h1>\n\n\n\n

Do not try to use a loan from another loan app to pay the debt. You are just digging yourself into more debt and just postposing the heartache that comes with it.<\/p>\n\n\n\n\n\n

Step 2: Assess your debt<\/strong><\/h1>\n\n\n\n

The first step to becoming debt-free is to assess the amount of debt you have. Make a list of all the loan apps you owe money to, including the interest rates and any late payment fees charged.<\/p>\n\n\n\n

This will give you a clear picture of the total amount you owe and how much you\u2019re paying in interest and fees.<\/p>\n\n\n\n\n\n

Step 3: Seek help if needed<\/strong><\/h1>\n\n\n\n

If you\u2019re struggling to pay off your debt, don\u2019t be afraid to seek help. Inform your family and trusted friends for support.<\/p>\n\n\n\n

Do not let your ego stand in your way of keeping your word and paying your debt.
You can also seek help from external and professional sources such as debt counselors, financial advisors.<\/p>\n\n\n\n\n\n

Step 4: Reduce your expenses<\/strong><\/h1>\n\n\n\n

Create a list of all what you spend money on every month.
You will need to cut off expenses in some areas and reduce expenses in other areas.<\/p>\n\n\n\n

Cut off expenses completely on any area that is not for business, work and health.
Reduce expenses in other areas where you can find a cheaper alternative.<\/p>\n\n\n\n

After you get out of debt, you can continue your soft life enjoyment.
Doing this will give you a clear picture of where your money is going and how much you can afford to put towards paying off your debt.<\/p>\n\n\n\n\n\n

Step 5: Create a budget and a debt payment plan<\/strong><\/h1>\n\n\n\n

You have reduced your expenses and now you know how much extra money you have monthly.<\/p>\n\n\n\n

The next thing to do is to create a budget; this is an important step in becoming debt-free. After that, create a plan on how much money you will put into repaying your debt per time.<\/p>\n\n\n\n\n\n

Step 6: Negotiate with your Lenders<\/strong><\/h1>\n\n\n\n

It\u2019s important to negotiate with your lenders if you\u2019re struggling to pay off your debt. This may come as a surprise but most of those lenders also want to get back at least some of their money.<\/p>\n\n\n\n

Many loan apps in Nigeria are willing to work with borrowers to come up with a repayment plan that works for both parties.<\/p>\n\n\n\n

Be honest about your financial situation and ask if they can reduce the interest rate or waive any fees. If they\u2019re unwilling to negotiate, consider seeking the help of a financial advisor or debt counselor.<\/p>\n\n\n\n\n\n

Step 7: Refuse to be bullied by debt collectors of loan apps<\/strong><\/h1>\n\n\n\n

This tip is due to the menace of some loan apps and their unethical & unlawful practice all in the name of debt collection.
Do not let them bully you, they care more about not losing their money.<\/p>\n\n\n\n

A simple google search will let you know that it is illegal for them to reveal your private information and smear your image all in the name of getting back their loan.<\/p>\n\n\n\n

So if you have made the mistake of taking loans from these unethical loan apps, do these:<\/strong><\/em><\/p>\n\n\n\n