Loan Apps are not your friends: My personal experience, by Tade Makinwa

For those who have been following me for a while, you’ll know I was actively into the agro-trading business. But in 2022, everything came crashing down, and I got heavily indebted in the process. Many of my products were sold at a loss; some were even stolen from the warehouse. And sadly, my own foolishness landed me in over 6 million naira debt from cashew storage.

I’m not talking about 200k or 500k debts, these debts ran into tens of millions. And just like that, it felt like my whole life was falling apart right before my eyes. That was the first time in my life I truly felt fear. I didn’t know what to do or how I’d repay the money. Those I owed were constantly on my neck.

I can honestly say I nearly had a baby heart attack. I’d wake up from sleep, my chest making strange noises, and I’d be panting. Calls came in non-stop, threats from left and right, some even dragged me publicly on Facebook.

I had a plot of land in a rural area of Ondo State, which I sold to pay part of the debts, but even that didn’t cover 10%. The pressure became unbearable. Though a close friend advised me not to borrow more money to pay off debts, I didn’t listen. I started downloading loan apps. I’m not sure how they evaluate applicants, but they gave me good offers. Before I knew it, I had borrowed over 4 million naira from loan apps and 2 million from my bank.

At first, it felt easy. As soon as the money landed in my account, I began sending small amounts to the people I owed. But as the money kept reducing, it was like the scales fell from my eyes, and I realized that I’ve landed myself in trouble.

The amount I borrowed didn’t even cover 40% of my total debt. And with the high interest rates, I became even more indebted.

That was how the journey of financial hardship began for me, from 2022 through 2024. Two whole years of financial struggle. Two years of working without saving a single kobo. Two years of regret. I wished I could turn back the hands of time and make better decisions, but the deed was done.

Every single month, I was paying at least 550k to 600k in debt repayments to the loan apps and the bank. My sleep quality deteriorated. I developed high blood pressure at a young age because paying this month’s bill didn’t relieve me of the anxiety about next month’s.

There was a time I was gifted 1.5 million naira, and before an hour passed, I had already distributed every kobo to the loan apps and the bank to settle what I defaulted on. But the interest rates had grown so much that even that money couldn’t break the cycle. I was paying far more in interest than I borrowed.

I couldn’t talk to anyone about it. I couldn’t cry out for help. I had to rely solely on my salary and side gigs to survive. No one around me could tell I was going through such a storm. I was too ashamed to admit I borrowed from loan apps and was buried in interest payments. All of this, while still worrying about rent, feeding, and everyday expenses.

Towards September last year, when I finally finished repaying the piled-up loans and interest, I cried, not just out of pain, but out of gratitude. I had come out of it with my dignity intact.

So, when I think back on the panic, stress, and loss I endured during those two years, I can’t help but laugh and also feel sorry for those falling into the same trap today. These loan app ads are everywhere on purpose, they’re shiny, seductive, and dangerously persuasive.

They tell you not to let emergencies weigh you down. They promise instant funds with no collateral, no paperwork. And just like that, you get hooked by hunger, by impatience, and temporary problems that carry permanent consequences.

The panic I used to feel when my phone wouldn’t stop buzzing from defaults, I can’t even talk about it. That was when I realized that the money I collected wasn’t a solution at all, it was a trap.

As a young person, debt is one of the worst ways to start your life. Those two years set me back significantly, all because of poor financial decisions.

Some burdens will clip your wings before you ever learn to fly. Some pressure will enslave your mind before your life even begins. And debt, especially unsecured, unproductive, high-interest debt is one of those burdens.

Now, don’t get me wrong. Not all debt is bad. Some debts help grow your business, increase your earning potential, or fund meaningful investments. But I’m talking about the kind of debt I took in 2022, the debts you borrow out of pressure, the ones you borrow to impress people, to buy the latest iPhone, luxury hair, or owanbe aso- ebi, borrowing for rent, feeding, or vacations without thinking about the harsh repayment terms.

These types of loans will ruin you. They will destroy your integrity, your dignity, and your credibility.

Yes, it’s easy to press a button and receive money in 5 minutes. But do you know that the interest rates are predatory? And failure to repay can blacklist you with financial institutions when you actually need funding for something meaningful in the future. These apps thrive on your desperation because they know you’re thinking only about now.

I will never forget, the day I paid off my last loan, I deleted all the apps and said, “Never again.” Only God knows what my eyes saw, which is why I am here to advice you against it.

Please, cut your coat according to your size. Learn to ask for help when necessary because some people can actually dash you what loan apps will ruin you over. Just like I did afterward, create an emergency fund, no matter how small. It’s better to save 1k every week for one year than to borrow 45k and end up owing 90k.

Lastly, you don’t need a loan to prove anything to anyone. You don’t need that quick cash if it will cost you your peace, your name, or your future.

Don’t borrow your way into slavery. Don’t let temporary hunger lead you into permanent shackles.

Loan apps are your enemies, treat them as such.