Loan Apps

How can I Stop Borrowing Money From Useless Loan Apps?

How can I Stop Borrowing Money From Useless Loan Apps?

Are you tired of falling into the trap of borrowing money from unreliable loan apps

These apps, often unapproved by financial authorities like the Central Bank of Nigeria (CBN), can lead you down a dangerous path of debt. In this article, I’ll provide an answer to the question “How can I stop borrowing money from useless loan apps”? You will also understand the risks involved, and find better financial alternatives.

Before going into answering the question (How can I Stop Borrowing Money From Useless Loan Apps), kindly explore the dangers of unapproved loan apps in Nigeria.

The Dangers of Unapproved Loan Apps In Nigeria

Before we dive into the solutions, it’s essential for you to understand the risks associated with unapproved loan apps. These are often referred to as “loan sharks” because they prey on vulnerable individuals:

Exorbitant Interest Rates: Unapproved loan apps usually charge incredibly high interest rates, sometimes exceeding 100% annually. 

Borrowing from them can lead to a never-ending cycle of debt.

Privacy Invasion: Many of these apps require access to your phone’s contact list and personal information, often misusing this data for unsolicited calls and messages.

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Harassment: Some unapproved loan apps resort to harassment tactics, both digital and physical, to recover their money, causing emotional distress.

How To Stop Borrowing Money From Useless Loan Apps

How can I Stop Borrowing Money From Useless Loan Apps
How can I Stop Borrowing Money From Useless Loan Apps

Below are answers to How can I Stop Borrowing Money From Useless Loan Apps in Nigeria:

Now that we’ve covered the risks, let’s discuss how you can break free from this cycle:

Evaluate Your Financial Situation

You need to start by taking a close look at your income, expenses, and outstanding debts.

Read: How to Stop Loan Apps from Accessing Your Bank Account or Money in the Bank Account

Create a budget to track your finances and identify areas where you can cut back on spending.

Build an Emergency Fund

Start saving a portion of your income regularly to create an emergency fund.

Having this fund will reduce your reliance on quick, high-cost loans in times of need.

Educate Yourself

Learn about legitimate financial institutions and their loan products.

Understand the terms and conditions, interest rates, and repayment schedules before taking any loan.

Use CBN-Approved Platforms

Only borrow money from reputable financial institutions and apps approved by the Central Bank of Nigeria.

Check the CBN website for a list of approved institutions.

Seek Financial Advice

If you’re struggling with debt, consider consulting a financial advisor or counselor for guidance.

They can help you create a debt repayment plan and manage your finances effectively.

Delete Unapproved Loan Apps

Remove any unapproved loan apps from your phone to eliminate temptation.

Unsubscribe and block their communication channels to prevent further offers.

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Report Abusive Lenders

If you’ve been harassed or mistreated by unapproved loan apps, report them to the appropriate authorities.

This can help protect you and others from predatory lending practices.

FAQs On How Can I Stop Borrowing Money From Useless Loan Apps

Here are some frequently asked questions on How to Stop Borrowing Money From Useless Loan Apps with answers:

How do I stop loan apps from contacting me?

To stop loan apps from contacting you, follow these steps:

Uninstall any loan apps you no longer use.

Opt-out of marketing communications within the app settings.

Block the loan app’s phone number if they contact you via calls or messages.

Read: How To Get A Loan From FCMB Bank With or Without Collateral in 2023

Report unwanted contact to your mobile service provider.

How can I stop loan app harassment in Nigeria?

If you’re facing harassment from loan apps in Nigeria, take these actions:

Report the harassment to the Consumer Protection Department of the Central Bank of Nigeria (CBN).

Notify your mobile service provider about the harassment.

Keep records of harassing messages or calls as evidence.

Seek legal advice if the harassment continues, as it may be a violation of your rights.

What happens if a loan is not paid on loan apps?

Failing to repay a loan on loan apps can have various consequences:

Accumulation of high-interest charges and penalties.

Negative impact on your credit score, making it harder to access credit in the future.

Legal actions, such as debt collection or lawsuits, depending on the terms and conditions of the loan.

READ ALSO:   How To Stop Loan Apps From Accessing Your Contacts

What happens if you don’t pay FairMoney?

Firstly take note that fairmoney is an approved loan app by CBN

 If you don’t repay a loan from FairMoney:

FairMoney may report your debt to credit bureaus, affecting your credit score.

They may use debt collection agencies to recover the outstanding amount.

Legal action may be taken against you if the debt remains unpaid.

How do I stop a loan processing?

To stop a loan processing, follow these steps:

Contact the loan app or lender immediately and inform them of your decision to cancel the loan.

Read the loan agreement to understand any cancellation or cooling-off period stipulations.

Return the funds if they’ve been disbursed, following the app’s specific instructions.

Can a loan app block my BVN?

No, loan apps cannot legally block your Bank Verification Number (BVN). 

Your BVN is a critical component of your banking identity and should not be used for punitive measures by loan apps. 

If you encounter such issues, report them to the appropriate authorities, like the Central Bank of Nigeria (CBN), for investigation and resolution.

Conclusion

Breaking free from the cycle of borrowing from unapproved loan apps is essential for your financial well-being. 

By following the steps outlined in this article, you can regain control of your finances, avoid the pitfalls of loan sharks, and work towards a more secure and stable financial future. 

Remember, responsible borrowing and financial literacy are your best tools in this journey to financial freedom.

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