Bababunmi Agbebi
Debt can be a major source of stress especially when you feel financially overextended by what you owe.
In Lagos, Nigeria, residents have different views on paying back debt, some say they don’t need to pay back loans on time especially when it involves family and close relations. Others say that debt can be a burden if not paid promptly.
Omolaja, a junior staff at a local government office in Lagos says borrowing before he receives his salary is inevitable as his take home is unable to sustain him for 30 days. He adds that he relies on some senior colleagues who lend him money but he makes sure to pay back immediately he receives his salary.
Chichi, a 24-year-old female who is a music studio assistant says her industry demands that she shows up ‘Good and Fabulous’ always and unfortunately her income can’t sustain it but her Mum is her go to Bank and she doesn’t necessarily have to pay back always.
Akinwale Olofinlade, 56, says he has no shame about owing loan apps. He adds that he has his name sent to many of his contacts and unfortunately that’s the only way he can survive as a civil servant. Akinwale assures that he will settle his debt before his retirement which is in four years until then he has children to educate and a family to sustain.
For Mrs Awobimpe, a perfume seller, she doesn’t have much issues in paying her debt as long as she’s able to sell her wares and get profit.
With these, navigating debt can be challenging, but coming up with a plan can help
1. Take Inventory of Your Debt
Before you decide on a strategy for paying off your debts, it’s a good idea to know exactly what you owe.
2. Use a Debt Repayment Strategy
Choosing a debt repayment strategy can help you divide and conquer your debts, either setting aside little money daily/weekly till its complete or discussing on ways to pay in bits
3. Adjust Your Budget
If you don’t already have one, making a budget can help you get out of debt. A budget helps you pinpoint places where you might be able to cut back and allocate income towards paying your lenders.
4. Limit Spending
While leaving room for fun spending, you could try pulling discretionary spending way back while you focus on bringing your debt down.
For example, you might choose to cancel your gym membership and work out for free at home or cut back on the number of streaming services you use, with the understanding that you can add these back once you’ve paid all debt.
5. Aim to Boost Your Income
On top of adjusting your spending to prioritize repayment, making extra money can open up opportunities to put more towards your debt. You can Freelance to make money with the skills you already have, selling things online won’t be a bad idea or just asking for a raise at work only if the time is right.
It is important to know and understand that paying off your debt can help improve your financial life. While making only minimum payments keeps you in debt longer and can mean paying more in interest, being more aggressive in your payoff strategy could help you reach your goals more quickly
