It all started innocently enough. My name is Tunde, and like many Nigerians, I found myself in an unexpected financial emergency. A sudden medical bill, a family obligation, or even an unforeseen car repair can push anyone to the brink. I turned to a loan app—one of those quick-fix solutions that promised instant relief. Little did I know, this decision would lead me down a path of endless debt and financial despair.

The Lure of Loan Apps

Loan apps are everywhere in Nigeria. They offer easy money with the click of a button, and their marketing is persuasive. The promise of quick cash with no collateral and minimal documentation was too good to pass up. I downloaded an app, filled in my details, and within minutes, the money was in my account. The relief was immediate, but so was the beginning of my financial woes.

The Short Repayment Period

The first red flag should have been the repayment period. Most of these loan apps offer loans with a repayment window of just seven days. Seven days! At first, I thought it would be manageable. But when you’re already in a financial bind, scraping together the money to repay the loan, plus interest, in such a short time is nearly impossible.

The Cycle Begins

When I couldn’t repay the first loan, I did what many others in my situation do—I borrowed from another loan app to cover the first. Then another. And another. Before I knew it, I was juggling loans from 15 different apps. Each one was due in seven days, each with exorbitant interest rates. The stress was overwhelming. I felt like I was drowning in debt, with no way out.

The Defamation and Harassment

What made the situation even worse was the harassment. Loan apps in Nigeria are notorious for their aggressive tactics. When I couldn’t repay, they started contacting everyone in my phone’s contact list, informing them of my debt. They sent defamatory messages, accusing me of being a fraudster. My reputation was tarnished, and I was humiliated in front of family, friends, and colleagues.

The harassment didn’t stop there. I received threatening calls from unknown numbers, day and night. They threatened to come to my house, to involve the police, and even to harm me physically. The constant fear and anxiety took a toll on my mental health. I knew I had to find a way out, but I didn’t know how.

Breaking Free from the Debt Cycle

I knew I had to take drastic measures to break free from this cycle of debt. Here’s how I did it:

Stopped Taking New Loans: The first step was to stop the cycle. I deleted all the loan apps from my phone and resolved not to take any new loans, no matter how dire the situation seemed.

Blocked Harassing Calls: I used apps like TrueCaller to block the spamming calls from loan agents. It didn’t stop them completely, but it reduced the number of calls I received daily.

Prioritized Repayment: I made a list of the loan apps that didn’t defame or harass me and started repaying them gradually. For the others, I informed them that I would only repay them through a legal process, and if they defamed me, I would take them to court.

Legal Action: I consulted with a lawyer who advised me on my rights. In Nigeria, defamation is a serious offense, and I was entitled to compensation for the damages they caused to my reputation.

Started a Side Business: To generate additional income, I started a small side business. It wasn’t easy, but every naira I earned went towards repaying my debt.

The Aftermath

The road to recovery was long and difficult, but I eventually paid off my debts. However, the damage to my reputation and mental health lingered. The experience taught me valuable lessons about financial management and the dangers of quick fixes.

What I Learned

Avoid Quick-Fix Solutions: Loan apps may seem like a quick solution to financial problems, but they can lead to long-term consequences. It’s important to explore other options, such as borrowing from family or friends or negotiating with creditors.

Understand the Terms: Before taking any loan, fully understand the repayment terms, interest rates, and consequences of non-repayment. If the terms seem too harsh, it’s best to avoid the loan altogether.

Seek Legal Advice: If you’re being harassed or defamed by a loan app, seek legal advice. In Nigeria, you have rights, and there are laws in place to protect you from such practices.

Build a Financial Safety Net: The best way to avoid falling into the loan app trap is to build a financial safety net. Start saving a small portion of your income regularly, so you have something to fall back on in case of an emergency.

Conclusion

My experience with loan apps was a harsh lesson in the dangers of quick fixes and the importance of financial literacy. If you’re struggling with debt from loan apps, know that there is a way out. It won’t be easy, but with determination, legal guidance, and a commitment to improving your financial situation, you can break free from the debt cycle.