Debt is something that almost everyone experience at some point in life. Whether it's borrowing money for school fees, handling unexpected expenses, or even trying to maintain a certain lifestyle, debt can creep up on anyone. The real issue, however, is how people handle the money they borrow. Most times, people end up in debt because they spend the money on unnecessary things or mismanage what they have.
Personally, I don’t mind lending money to people in need. After all, we all face moments where we desperately need financial help, and if I can assist, I’m happy to. However, I do need to be certain that the person can pay me back. I believe it’s important to borrow responsibly, especially if it’s for something significant, like paying a child’s school fees. Many people go into debt just to send their children to school, which I think is a noble reason. I’ve been in that situation before, so I understand. It’s a sacrifice that benefits the student in the long run.
I remember when I was in high school, I got into debt myself. I wanted to keep up with a lifestyle that my pocket couldn’t afford, so I started borrowing money from my classmates. At first, it seemed harmless, but the problem came when I couldn’t pay back at the agreed time. The person I owed reported me to the hostel master, and I was terrified that the situation would escalate and reach my parents. My parents were already sending me money, but I misused it trying to fit into a lifestyle I couldn’t sustain.
In the end, I had to agree to pay the money back in installments, but this came at the expense of my feeding money. For weeks, I struggled to eat well because I was using the little I had to settle my debt. It was a tough lesson, but it made me more cautious about borrowing in the future.
Being in debt can happen to anyone, even the wealthiest people. For instance, Aliko Dangote, the richest black man in Africa, had to borrow a large amount of money from Nigerian banks, including the Central Bank of Nigeria, to help fund the construction of his oil refinery, which isn’t yet completed. This shows that even successful business people rely on debt to achieve certain goals.
Debt has its advantages and disadvantages. On the positive side, borrowing money allows you to handle urgent expenses or invest in opportunities that you wouldn’t be able to afford on a normal day. For example, taking a loan to start a business or pay for education can be a smart move because it can lead to future success. Also, debt can also help during emergencies when you have no other financial resources to run to.
However, the downside of debt is that it can quickly spiral out of control if not managed properly. Borrowing without a clear plan to pay it back can lead to high-interest rates, missed payments, and more stress.
You could find yourself using all your resources just to repay what you owe, which leaves little for your other needs. It can also affect relationships when you're unable to repay friends or family members, or when creditors start breathing down your neck and start disturbing you to pay them back.
Last semester, one of my friends borrowed about 8,000 naira from an online app. He actually needed money for feeding because the money his parents sent to him was not enough. When it was time to pay back, he didn’t have the money. They kept sending messages and calling him several times to pay, but he couldn't. Due to this, they kept adding a lot of interest, and by the time he could pay, the amount was already double what he initially borrowed. This caused him a lot of stress, but he had no choice but to pay them back, even though he was in distress.
In conclusion, debt isn’t inherently bad and it can be a useful tool when handled responsibly. But borrowing beyond your means or for unnecessary things can lead to serious trouble. I believe that whether it’s for personal use or business, always have a repayment plan in place before taking on any debt. Also, dont borrow more than your pocket.
image is from Meta Ai.