Why Taking Of Loan Will Get You Into Trouble ( How to avoid that)


Money is very important when it comes to having a great life, at some point, we find it difficult to solve our problems when it comes to financial predicaments. What if I tell you that taking loans can get you into trouble.

Some people will disagree with that but I’ll try and explain to you want I meant by that and how you can avoid taking a loan every time you face any difficult situation.

Loans somehow give us a sense of relief most especially when we’re able to solve our current financial problem, but at some point, it creates more problems for us in the long run.

In as much as it creates a temporary relief at the moment, it creates a monster in the long run that can give you sleepless nights, affect your finances and also create dependency on loans for survival.

Why Taking Of Loan Will Get You Into Trouble

What Are the Effects Of Taking Loans

Taking of loan all the time can create a physical and mental state of unrest if you’re not able able to get out of your debt.

Below are common effects of taking loans from financial institutions

Post-traumatic stress disorder 

According to Wikipedia, post-traumatic stress disorder is a mental and behavioural disorder as a result of exposure to traumatic events. This comes with symptoms such as disturbing thoughts, feelings or dreams. This can create suicidal thoughts in the mind of the victim.

When people take loans that are way more than their income it begins to create some sought disorder in their financial life.

when their bills and upkeep has been taken care of, they’re sometimes left with nothing. A situation like that begins to create post-traumatic stress disorder as it will put their body and mind in a state of unrest because the borrower knows full well that the loan he took can lead to losing his properties and businesses most especially when the loan is taken from financial institutions like the bank who always ask for collateral before they can offer a huge amount of loans for business and personal use.

Here is a story about a young lady “Stella”, not a real name. She was having financial difficulty, she contacted different family relatives to ask for help but they were all complaining of not having money. Someone introduced her to a loan shark company that charges 30% for a 7 days loan. Due to desperation, she took the loan.

After 7 days, she couldn’t pay back the loan. The company started threatening her with all manner of threats, telling her they will broadcast her information on social media, telling the world she is a fraud. 


She had to call the customer care of the company and pleaded with them that she is trying everything possible to raise the complete money and pay them back. The company went ahead and send a series of heartbreaking messages to her colleagues and boss at work that she is a fraud.

The lady couldn’t take all of that, she went ahead and committed suicide. Stella was a healthy lady with no records of suicidal attempts or illness. She lost her life as a result of post-traumatic stress.

Financial Instability

Taking loans can create financial instability in the life of a borrower when he finds it difficult to balance the income and expenses. As a result of a debt or loan, you might find it difficult to take care of your needs such as paying electricity bills, water bills, school fees for kids, clothing and eating a good meal etc.

You will find yourself cutting down expenses and denying yourself some important things all in the name of trying to pay back your outstanding bills.


Having debt can lead to dependency on other lending companies to pay back outstanding loans. Debtors are good at taking loans from other lending companies to settle their debts most especially when they’re having a good credit score.

Using loans to settle loans will only take you back as you’ll be surviving on loans, that you cannot do forever.

How To Avoid  Taking Loans

You can avoid taking loans by observing by doing the following

Cultivate a Saving Attitude

Having a great savings will help you avoid taking loans from financial institutions. As humans, a lot of unexpected things happens every day which requires some money to solve.

If you have a saving you can comfortably use from that to solve any unforeseen circumstances

Create a Budget Sheet

Create a budget sheet that will contain how you intend to spend your money every month. By following that budget, you’ll avoid any unnecessary spending that will affect you financially or even lead you to borrow money from financial institutions like the bank.
To do this properly, you can use excel to properly create a budget sheet which you’re going to use every month for proper record keeping.

Invest In a Business

Investing in any physical business will serve as a backup plan for solving any financial problem that may arise in the future.
When you set up a business of your choice, you can now invest some percentage of your money into the business every month. By so doing, you can build a business that can help you financially when you’re desperately in need of money.