The Trap of taking loans, from loan apps the mistake most young people do.

[Makus]

From what you have described, from every beat it does not look like you have 20 loan apps all in at once it's a normal start process with no rush, now it starts as please i need just 20$ for this week; I would pay back on Mondays once the week starts…And in a little while, before you know it, you’re not borrowing for needs anymore. You’re borrowing to stay alive and the debtor would start to dodge harassment…..Still talking about it, these loans from loan apps are crazy most of the time...their interest is not helping…

The worst situation you can ever be in is to borrow for survival, this means that you don't even have a plan to pay back because this is different from when you borrow money to invest in a business or do something that can give you an Income, borrowing money to feed is crazy but I don't really blame a lot of people because it seems like they don't really have much of a choice.

The harassments Is one thing that makes life a living hell especially when they start sending broadcast messages to your contact list, it is actually an invasion of privacy and they can be sued for that.

[Versatile_choice]

~snip~

I understand that these loan app provide quick access to money whenever there is any sort of emergency. But I do not agree that idea of taking loan is okay or that it is a personal choice.
Young people sometimes do not understand total cost of loan when they do not have proper knowledge about the penalties, interest, repayment method or period to repay that is involved. In these types of cases, a simple loan becomes a problem for them.
Taking help for the convenience is okay, but it should not put someone into a financial trap. People need better financial education so that they should know that went to take loan.

Of course, taking loans is okay and it's a personal choice, there are people who decides that no matter how bad the situation may be, that they can't go for loan. Of course I have a siblings who is like that, he would rather seek for help or support from any of his family members than to take out loan, he used to tell me that the reason why he has refused not to take loans is because when it gets to the due date it looks as if he is just giving out money for free of which I also heard someone saying similar thing.

Personally, I don't see anything wrong in taking loan rather my only advice is that after taking loan we need to ensure that we pay back on time to avoid facing unnecessary penalties.

[AmoreJaz]

The loan should be invested in such a profitable activity that later on it can be profitable from that investment and it will also be easy to repay the loan. Taking a loan increases the financial pressure of a person as well as his mental pressure.

I think some people are also rationalize it by saying buying this or that can make them be more productive, hence why they take a loan or paylater to buy some stuff early to make sure they can increase their productivity. Of course, some of them are true, while the rest aren't. To begin with, instant loan apps clearly target people who lacks a bigger control over their spending habits to begin with. They know the offer is too good to decline for those people who has issues with cashflow.

The common problem with these loan apps is that they are charging high interest rates that you will end up paying a lot. It is like you are giving them good income out of your pocket. So before you avail one, think of the repercussions afterwards because you might not end up saving some but instead you will be financially challenged by this loan.

[JoyceBTC]

There are lots of restrictions for people that owe loan apps, this would affect your reputation and also travelling out of the country might end up being an issue. A lot of people's Visa's get rejected as a result of this and they don't even know.

The highest they can do when one refuse to repay loan or unable to repay loan is to call most of your close contact concerning your loan, send all your contacts your pictures, painting you a debtor and also restricting you from borrowing from other loan apps. They can’t stop you from traveling outside your country or even visa rejection.

[I_Anime]

From what you have described, from every beat it does not look like you have 20 loan apps all in at once it's a normal start process with no rush, now it starts as please i need just 20$ for this week; I would pay back on Mondays once the week starts…And in a little while, before you know it, you’re not borrowing for needs anymore. You’re borrowing to stay alive and the debtor would start to dodge harassment…..Still talking about it, these loans from loan apps are crazy most of the time...their interest is not helping…

The worst situation you can ever be in is to borrow for survival, this means that you don't even have a plan to pay back because this is different from when you borrow money to invest in a business or do something that can give you an Income, borrowing money to feed is crazy but I don't really blame a lot of people because it seems like they don't really have much of a choice.

The harassments Is one thing that makes life a living hell especially when they start sending broadcast messages to your contact list, it is actually an invasion of privacy and they can be sued for that.

That’s why I don’t advise anyone to go for loan. Using loan to feed is indeed worst because the reason of one going for that loan the first place was because they couldn’t provide that amount . So how sure that they will be able to raise that same amount when the time come to pay for the loan . Loan is not charity is someone else business where you will have to pay a certain percentage which will be the profit or gain of that organization or entity, that’s why one has to find means to avoid being in the position of going for loan .

[batang_bitcoin]

Personally, I don't see anything wrong in taking loan rather my only advice is that after taking loan we need to ensure that we pay back on time to avoid facing unnecessary penalties.

I don't see it as something wrong if we have the capacity to pay it and we only want to leverage the cash flow that we have. I think the root cause why it has become bad is when people overdo and rely too much of it while they have lesser capacity to pay for it. They're taking multiple loans and that's more than what they earn. They think that it is the money that they haven't worked for yet. A wrong mindset can destroy someone's finances if they have been using these loans wrongly. So take loans according to your capacity and the younger ones will learn the lesson badly when they overdo it.

[dansus021]

BUY NOW AND PAY LATER is the tagline and has been widely used by the young generation including me  in today era. Back then banking system is kinda tricky and cant be used by lot of people. Pay later is the new form of credit card but with lot of flexibilty but with high interest rate but lot of people didnt realise that. Now using GOV id - fill some data - approved and you can buy anything without any question asked. That convenience is little bit dangerous if we dont have total control.

Debt is a tool that should only ever be used for income-generating assets like a business, productive machinery, or essential education where the expected return on capital is higher than the interest rate. Using unsecured, 300%+ APR app loans for consumer spending or daily living expenses is financial suicide. Building an emergency fund, living below your means, and saving in hard assets or productive investments remains the only real foundation for long-term financial independence.

[angrybirdy]

The loan should be invested in such a profitable activity that later on it can be profitable from that investment and it will also be easy to repay the loan. Taking a loan increases the financial pressure of a person as well as his mental pressure.

I think some people are also rationalize it by saying buying this or that can make them be more productive, hence why they take a loan or paylater to buy some stuff early to make sure they can increase their productivity. Of course, some of them are true, while the rest aren't. To begin with, instant loan apps clearly target people who lacks a bigger control over their spending habits to begin with. They know the offer is too good to decline for those people who has issues with cashflow.

The common problem with these loan apps is that they are charging high interest rates that you will end up paying a lot. It is like you are giving them good income out of your pocket. So before you avail one, think of the repercussions afterwards because you might not end up saving some but instead you will be financially challenged by this loan.

it’s like the monthly payment you make is mostly for the interest, while only a small amount is deducted from the principal. That’s one of the reasons why people should always think carefully before taking out a loan from loaning apps especially nowadays that there's a lot of online loan apps scattered everywhere. much better to use a credit card that offers a lower interest rate and more flexible payment terms. Also, if you’re considering taking out a loan, make sure to use it properly or for things that you think can help you to generate additional income not just for vices or buying stuff because it’s trending.

[ayojikun]

BUY NOW AND PAY LATER is the tagline and has been widely used by the young generation including me  in today era. Back then banking system is kinda tricky and cant be used by lot of people. Pay later is the new form of credit card but with lot of flexibilty but with high interest rate but lot of people didnt realise that. Now using GOV id - fill some data - approved and you can buy anything without any question asked. That convenience is little bit dangerous if we dont have total control.

Debt is a tool that should only ever be used for income-generating assets like a business, productive machinery, or essential education where the expected return on capital is higher than the interest rate. Using unsecured, 300%+ APR app loans for consumer spending or daily living expenses is financial suicide. Building an emergency fund, living below your means, and saving in hard assets or productive investments remains the only real foundation for long-term financial independence.

Indeed, avoiding loans is the best way to build financial independence and achieve your goals. Of course, this is not easy; urgent needs or other necessities often drive people to take out loans. However, you end up paying substantial interest, and the convenience of loan applications can mask a trap that complicates your situation—even though borrowing remains an option when facing financial difficulties.

[qurbanshah02]

The common problem with these loan apps is that they are charging high interest rates that you will end up paying a lot. It is like you are giving them good income out of your pocket. So before you avail one, think of the repercussions afterwards because you might not end up saving some but instead you will be financially challenged by this loan.

We have quite a few big apps for loans but I have not turned to them till now because I knew I have no income and how will I repay that loan so I never thought about it even though I faced a lot of difficulties but still I did not do such things. But when I got income and like Binance we can do dollar transactions in any way, similarly we have our own apps in our area from where we can send money in our currency. I have definitely taken a loan from there but it is very small if it is based on dollars then $10 haha. That is to say I took advantage of it according to my need although they do not charge much interest but when the amount is high then the same interest increases and every week they used to add interest again. But I have left this job now because it is quite stressful so I do not turn to it anymore. So taking a loan in times of difficulties is not a bad thing but one should also take care of paying it off.

[Inior]

Finally I've found a discussion about loans . While a loan may seem harmless at first, it is actually a dangerous trap to get into, especially when you don't have the knowledge of what you're getting yourself into. Most young people have buried themselves in debts that would take a long time to pay off due to their financial condition, but if you ask them how they managed to get themselves into such a mess, they may not provide you with any valid reason. This is because they failed to understand how money works. Loans shouldn't be used for pleasures or your wants, it should strictly be used for needs that couldn't be met off your pay.

[drangos]

Personally, I don't see anything wrong in taking loan rather my only advice is that after taking loan we need to ensure that we pay back on time to avoid facing unnecessary penalties.

I don't see it as something wrong if we have the capacity to pay it and we only want to leverage the cash flow that we have. I think the root cause why it has become bad is when people overdo and rely too much of it while they have lesser capacity to pay for it. They're taking multiple loans and that's more than what they earn. They think that it is the money that they haven't worked for yet. A wrong mindset can destroy someone's finances if they have been using these loans wrongly. So take loans according to your capacity and the younger ones will learn the lesson badly when they overdo it.

Borrowing is not necessarily a bad thing  it's when borrowing becomes a habit instead of a tool that the problem begins. Having a plan for paying the debt back, and a need that is legitimate, can make a loan manageable. However, getting a second loan to pay off a first loan or to afford a living that surpasses what they can afford can quickly become a vicious cycle of borrowing. It is important for young people to remember that borrowed money is money that is already out of their pocket and they are borrowing it from someone else. It's far better to understand the repayments involved and not take out more than you can afford than to obtain easy credit.

[Comeacross]

The worst situation you can ever be in is to borrow for survival, this means that you don't even have a plan to pay back because this is different from when you borrow money to invest in a business or do something that can give you an Income, borrowing money to feed is crazy but I don't really blame a lot of people because it seems like they don't really have much of a choice.

The harassments Is one thing that makes life a living hell especially when they start sending broadcast messages to your contact list, it is actually an invasion of privacy and they can be sued for that.

Borrowing money for survival is worse but borrowing for investment is not ideal either. Like you said, people can not be blamed, they're desperate because they don't have choice. How the interest stack up with this loan apps is annoying. Sometimes I find it funny because how do you expect someone who's struggling to pay back the principal amount to pay the stacked up interest? They want to keep their borrowers indebted forever.

But to be honest, you are wasting your time if you want to sue them. Better to use the money you'll use in the legal process to pay them back. Remember you clicked on "I agree to terms and conditions" before they disbursed the loan. You also grant them permission and access to your contact list during the process and that's how they have information about your contact to send those harassing content to defame you. I'm not in their support, neither saying what they're doing is right but you don't have a good case against them if you sue them on that ground.

[Jubilee58]

If you collect any loan from a loan app, it is necessary you repay the loan in time to avoid further accumulation of interest. Collecting loan from loan apps is not bad because there are some faithful borrowers who uses it to sustain their own business, but when you don't repay in time or as at when do, you have blocked the access of taking more loans, and when you finally repay and you want to collect the loan again, the amount they will offer you will very low.
Some loan interest are very high, and when people borrow under emergency situation they no longer consider how high is the interest, and making them during the time of repayment they see the money to be too high for them, and finally remain indepted. But it is better you understand their terms and conditions, and comply accordingly to avoid disturbance from the lenders.

[dansus021]

BUY NOW AND PAY LATER is the tagline and has been widely used by the young generation including me  in today era. Back then banking system is kinda tricky and cant be used by lot of people. Pay later is the new form of credit card but with lot of flexibilty but with high interest rate but lot of people didnt realise that. Now using GOV id - fill some data - approved and you can buy anything without any question asked. That convenience is little bit dangerous if we dont have total control.

Debt is a tool that should only ever be used for income-generating assets like a business, productive machinery, or essential education where the expected return on capital is higher than the interest rate. Using unsecured, 300%+ APR app loans for consumer spending or daily living expenses is financial suicide. Building an emergency fund, living below your means, and saving in hard assets or productive investments remains the only real foundation for long-term financial independence.

Indeed, avoiding loans is the best way to build financial independence and achieve your goals. Of course, this is not easy; urgent needs or other necessities often drive people to take out loans. However, you end up paying substantial interest, and the convenience of loan applications can mask a trap that complicates your situation—even though borrowing remains an option when facing financial difficulties.

I know right but some people just borrow their money through this platform because its easy to apply like I was said before and super convenient and this is actually a trap for people who really didnt know about the program.
Only borrow if the situation is really an emergency and you need that money for it. Dont fill up your desire or for the sake of prestige you ending up fall into debt trap

[Fortify]

Of course, taking loans is okay and it's a personal choice, there are people who decides that no matter how bad the situation may be, that they can't go for loan. Of course I have a siblings who is like that, he would rather seek for help or support from any of his family members than to take out loan, he used to tell me that the reason why he has refused not to take loans is because when it gets to the due date it looks as if he is just giving out money for free of which I also heard someone saying similar thing.

Personally, I don't see anything wrong in taking loan rather my only advice is that after taking loan we need to ensure that we pay back on time to avoid facing unnecessary penalties.

Your sibling doesn't sound like someone who very responsible or maybe they're just selfish to rely on family members rather than taking out a loan. That is someone elses money that they are spending and their convenience, preying on the good will of family instead of borrowing money the way most other people do it is not in any way honorable. If he is not clever enough to save money himself, negating the need for any loans, then he shouldn't exactly be judging the banks for charging an interest rate. Sometimes family members won't say no, but will hold resentment against you for taking their money away. I remember Warren Buffett talking about borrowing money and he said the only good loan was a mortgage, certainly not a car loan because they tend to depreciate massively and anything else is most likely just a luxury that you could save to afford first.

[Berry2d]

It may look stupid if I say all humans survives by loan in one way or the other, many may be buoyant or stable financially but to an extent survive his businesses on loan so it will be advisable we repay after taking it to solve our problems.  Many thinks its bad taking loans but I will say there is nothing wrong with it, all we are expected is just to repay and it must be on time because the lender in question is there for his business.
Some people after taking loans forgets without knowing the money must be paid on one faithful day and then it may have accumulated much interest above what was expected in the first place,  so the best is to repay in due time to avoid those unnecessary interest.

[Antotena]

The common problem with these loan apps is that they are charging high interest rates that you will end up paying a lot. It is like you are giving them good income out of your pocket. So before you avail one, think of the repercussions afterwards because you might not end up saving some but instead you will be financially challenged by this loan.

You know how wicked these loans apps are, they called you everyday and beg you to come carry loan. Some people are not interested in any of their loan but they will convince you why you need the loan. As soon as you take that loan, that's when you know that you have signed up for death threat. They will disturb you and even gives you threatens, some will say they are going to make you regret why you take the loan in the first place.

If not now that government has sued some of this loan apps to court, if they noticed the customers didn't meet their deadline. The next thing they do is to share your images on popular social media that guy took loan from them and you are unable to pay back which is wrong, that's defamation. The fact that a person take loan from you does not gives you the audacity to post their pictures on social media disgracing them.

[GiftedMAN]

Some people after taking loans forgets without knowing the money must be paid on one faithful day and then it may have accumulated much interest above what was expected in the first place,  so the best is to repay in due time to avoid those unnecessary interest.

I don't believe that people forget to pay back loans after taking it I think it would be better if you say they decide to act like they don't care then later they would realize that they have mufh accumulation and they will be be paying it in a hard way. If you owe people you can't forget end if you are owed you won't forget also, people should be bold enough to pay back loans after taking it that shows how responsible they are.

[GeorgeJohn]

The common problem with these loan apps is that they are charging high interest rates that you will end up paying a lot. It is like you are giving them good income out of your pocket. So before you avail one, think of the repercussions afterwards because you might not end up saving some but instead you will be financially challenged by this loan.

From the beginning I disregard loan app, because sometimes most of them requirements involves a vital document of the person, including some of your banks credentials...with your bank details you upload to some of the loan app they can get access to your bank even though you havs paid them completely....I'm afraid of unnecessary loss from unknown sources, the interest they charged never be my problems, the problem is side effects of the loan after you submitted your original credentials to their platform....secondly, they increase their interest more than normal bank interest if you take loan from bank...so it will be better for we to lend money from our neighbourhood than taking a loan from apps...