Onigbese MTN: 34052304078400601 is a Yoruba word that means “debtor”. It’s one of the last things you ever want to get called. It’s a bad label and is often attached to people who have a penchant for owing money.
There’s nothing wrong with getting a loan to take care of a pressing need but when you do so without paying back, it becomes a major issue. It’s no secret that money can ruin friendships and relationships if not managed properly, especially in regard to debt.
Here are some tips to help you ensure that you pay back debts:
Do not borrow more than you can handle
Take a look at your current income and look at the amount of money you intend to borrow. Are they worlds apart? Will it be next to impossible to pay back a loan? If yes, then you should certainly have a rethink. You do not want to borrow money that you will have a hard time paying back. You might end up having to sell off some of your items or even worse- borrow to pay back your debt. You don’t want that do you?
Do not borrow money for ridiculous purchases
This is tied to the first point. There’s no point in borrowing money so that you can make expensive and ridiculous purchases that you do not really need. When you do so, you’ll end up borrowing more money than you might be able to repay. Next thing you know, you’re asking yourself why you went overboard.
Have a repayment plan
Do not borrow money if you do not have a plan on how to pay it back. If you borrow money based on vibes and think that the universe will find a way to help you pay it back, you’ll be shocked when payday comes. 💀
Have a plan to repay a loan even before you request one, and make sure you communicate this plan with the lender.
If you cannot meet a deadline, communicate
Don’t be all up in the faces of friends, coworkers or family members when you need a loan, only to ‘ghost’ them when the repayment due date approaches. It’s a bad look. If you realise that you might be unable to repay a loan at the agreed date, ensure that you politely inform the lender(s) ahead of time and request an extension.
Make smart financial decisions
If you have a debt to repay, the last thing you need to do is make terrible financial choices. Avoid overspending, splurging or bing on impulse. Approach money with discipline and save as much as you can, so that you can approach repayment with confidence.
Augment your current income
If you find that you might be unable to repay a loan with your current income, look for ways to make more money. Leverage your skills ad connections to find some side jobs that can help you make enough money to clear your debts.
Do not procrastinate
Once you receive your income or some unexpected cash gifts, repay your loan. Even if you cannot afford to repay the whole amount, pay a part of it and promise to pay back the rest as soon as you can. There are a million and one things vying for your cash. If you do not repay a loan on time, you might end up spending your money on unforeseen expenses, leaving your debt to go unpaid.
What other loan repayment strategies do you have? Share with us!
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