When I started learning about my finances and paying attention to the things I buy, a lot of things changed for me. First, I could tell just about how much I needed to live through a 30 days window without being affected. Then, I discovered where a large percentage of my money went. Afterward, I discovered the things I do with my money that bring me immense joy, peace, and happiness.
I went further to learn how I can stay committed to saving away a portion of my funds. I learned about how loans work, and how I can leverage the advantage of using someone's else money to build my credit score. For this part, the universe gave me quite a large amount of debts that were due with little resources to cater for them so I can learn.
At this point, I realized I was bullshitting myself. I found out I was living an expensive lifestyle over money I can't comfortably afford. It was crazy. During that period, I knew I had messed up big time, and I needed to act fast.
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It wasn't easy facing my fear of having my name, pictures, and details publicly displayed and called out for fraud. Yes, in my country tax collectors behave this way. Since I didn't want to have this public display of disdain, I decided I needed to stop and work around my finances again.
The thing about the universe is that once you decide to do something and your mind is made up, she supports you. And the way the universe supports you is making you see gaps you can fill that will bring you money, and help you sort your financial issues out. The universe did this for me.
I had no idea where the different advantages I had came from, all I knew was that I started getting job offers that brought in enough money to pay the already due loans, and subsequently the monthly dues. Hive was also a part of my saving grace. Earning hive, and being a part of the price spike around November/December was my blessing and saving grace.
I found myself living way below my means, and reducing my spending habits during those periods. My budget changed, I split it into four and send the rest of the funds off to pay off debts. I won't lie to you, it wasn't easy. I saw the things I would love to buy but stopped myself from doing them because I had deadlines to meet. Even though I did a job and got paid in huge amount, I sent everything off to pay the debt.
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It was painful when my bank statement came and I had spent a lot of money and a large percentage went to another person's pocket (loans). I just couldn't wait to have everything cleared off so I can return to my old life, not exactly everything though. This time, I would be more careful.
A lot of lessons surfaced when this happened. I realized I could live below my means. I learned a lot about loan apps. Today, I can confidently explain what anyone is likely to get when they borrow money, and couldn't pay on due dates on various loan apps I have used.
As a result of paying those loans off, I built a good credit score. No, I am not planning to abuse this again. I'll think it over, and only use them as leverage to my advantage (this means using their money to make more money instead of funding my lifestyle)
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It seem as though I was blind before then, for I wasn't seeing the huge interest rates I was paying on those loans. I was looking at the extra funds. Let's say, I got ₦35,000 and the interest rate is 30%(Jumia Loan App gives you this). I didn't look at the interest. I concentrated on the extra amount they wanted me to give to allow me have ₦35,000 for 30 days . I just said, "oh I just need to return ₦10,500 extra after 30 days, I can handle that". Oh jeez, I was foolish. It would have been great to handle that if I used the ₦35,000 to get back maybe, ₦60,000-₦75,000. No, I was using it to buy things that do not bring money back. Like groceries, data subscription, clothes, etc. This was mere foolishness.
I am not regretting this because I learned from it. Today, I can boldly explain to anyone they are making a huge mistake, if they take loans to fund their lifestyles instead of creating income.
I also learned the reason high interest is attached to loans is that it is risky to lend someone money. Therefore, to cover for the risk of not getting their money back, the interest is increased per individual.
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I haven't paid off everything, but I am close. It's a few dollars left, and if I was able to pay a greater portion of that money back, I am confident I'll be able to do the balance.
Every day when I wake up and realize my debt is almost gone, I am happy and grateful to the universe and Hive for everything. As compared to those days when I dreaded waking up and opening my mails, and SMS, knowing that I'll be getting bombarded messages from loan agents and companies.
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Another beautiful thing that came out of this is that those loans app has turned out to be saving apps with high-interest rates for me. For instance, Carbon gives you 15.5% interest to save with them. This means, the funds that would have been left lying around in my checking account, dying out, due to inflation, will be earning an interest higher than what bricks-and-mortar banks give.
Right now, when I am done clearing my debt, I'll be more proud of myself, and extremely happy. Then, I can move into taking greater care of my finances, so, I wouldn't repeat this lifestyle.
I can't wait to get everything paid off so I can start using my hard-earned money to cater towards financial freedom and independence.
Do you have debt hanging around your neck? How do you take care of it? Share with me.
Posted Using LeoFinance Beta
