Reasons Why You Should Not Take Loans

A financial institution usually gives customers a digital loan to solve their financial problems. These loans usually come with interest and the borrower is expected to pay back the loan within a stipulated time frame. 

Digital loan in Nigeria is on the rise over the years and this has brought about seeing so many lenders giving out loans to customers. The increase in the demand for these loans has brought so many loan sharks into the industry which has created more disasters.

Loans can sound or look like a saving grace in a place like Nigeria where the hardship is high and the poverty rate is on the increase. This loan that looks like a financial solution can become a nightmare that can destabilize one’s income if that individual is not careful.

The topic of digital loans is usually a nightmare for most borrowers in Nigeria. This is because most of these individuals have fallen victims to loan sharks operating genuine loan companies.

When you’re financially handicapped or strapped for cash, the next thing you’ll think of is taking a personal loan as the solution. You might be tempted to use these loans to solve your financial problems with the hope that everything is gonna be okay. 

However, going down this lane can lead to a lot of unwanted consequences and could potentially make things even worse for you according to financial experts.

When you go down this lane without proper thinking and analysis, you might end up finding yourself scrambling to make repayments along the road, which would end up leaving you dealing with the same financial problem over and over again.

Also Read: Why most Nigerians will not get a credit card

7 Reasons Why You Should Not Take Loans

3 Reasons Why You Should Not Take Loans

Taking of loan can actually solve your financial problem but it can also create more problems that can actually create some kind of instability in your life. below are 3 major reasons why you should not take loans.
  • Financial Instability
  • Dependency
  • Mental Stress

Financial Instability

Digital loans can bring about financial instability in the life of the borrower. In most cases, a victim of this, usually find it difficult to take off their financial needs such as paying off debts, electricity bills, house rents, hospital bills, changing wardrobes, and even paying school fees.
When a debtor is unable to take care of his financial needs, the borrower ends up struggling to even take care of financial needs and this might lead to a massive imbalance in income and expenses.
When equilibrium is not achieved in terms of income and expenses, this ends up creating massive financial instability.


Dependency on digital loans is one of the major challenges people usually face. In today’s Nigerian economy, a lot of Nigerians are using loans to solve loans. Even though we don’t have statistics to back this assertion but this is actually the reality today.

As an individual who is having a debt to pay off, the person might be tempted to use digital loans to pay off those debts. At that time, it can actually solve the financial predicament of the debtor but in the long run, it will eventually affect the borrower

Metal Stress

When you take digital loans, it can create some level of mental stress as it keeps the mind of the borrower unstable.
This can lead to a Posttraumatic stress disorder or Insomnia. A sleeping disorder that stops an individual from falling asleep even when they try hard to get some sleep. Thi disorder makes the person wake up too early or in the middle of the night without being able to fall asleep.
Such disorder can affect the psychological well-being of an individual and his ability to perform effectively at home or place of work.

How To Solve Monetary Issues With Having To Take Loans

For you to be free from loans, you can develop the habit of proper planning in other to make sure you don’t think about using any loan product to solve your financial predicaments. Below are three (3)  major effective ways of solving monetary problems without having to use a digital loan.
  • Stating a business
  • Savings
  • proper budgeting

Stating a business

One of the best ways of avoiding taking of loan is by establishing a business of your own. When you get to invest in any physical business, you can make enough money that could actually take care of your money problems and you can still have enough to finance and sustain the business. Your business can serve as a backup plan for you whenever you need money.
You don’t necessarily have to invest and create a mega business, you can actually start small and grow it with time


The ability to save properly will save you a lot from taking a loan to solve monetary problems. For any reason, if you find yourself struggling to save then you need to do something about it. 
In today’s world, with the type of technologies at our disposal today, anyone can manage finance properly by saving digitally. Mobile apps like piggyvest is a great app that allows you to properly save and manage your money in a well-organized way.
Unforeseen circumstances can happen to anyone which may require you to take a loan. But with proper savings, you can actually overcome that.

Proper Budgeting

Proper budgeting will enable you to properly manage your finances. When you’re able to properly manage your budget you can avoid spending on things that don’t matter.


Whenever you think of taking a digital loan, you must make sure it is the only available option for you to get money to solve your monetary problems. It should always be your last line of defense when it comes to solving any financial problem. 
I’ll always advise people to disregard the idea of taking a loan whenever it is not necessary. Always try to advise people to plan properly, invest in profitable businesses, and learn how to make proper use of a budget sheet in other to carry out proper planning.
If you find this article helpful, don’t forget to share. This will encourage us to write more informative and educative articles like this.
For questions and inquiries, you can drop them in the comment section. We’ll try to respond to them as fast as we can.

Back to top button