Easiest Way to pay back a debt or offset a loan

Have you ever taken a loan, and had to struggle to pay back before the deadline? You are not alone. People borrow money on a daily basis, and for different reasons. The financial institutions and individuals who make these monies available, are also doing it for the profit.

This week, we have discussed issues surrounding financial challenges. And last night's story was that  shared by Sarah, who lost her husband to a terminal illness that saw her borrowing a lot of money to try to salvage the situation, but unfortunately she lost her husband. But that was not the end to her pain, as a knight seemingly clad in a masqueraded armor waltzed buy to save her from her financial distress, but on the condition she becomes a concubine. She reached out to us for help, and hence I thought to share this with you.

Sarah's case, though quite pathetic, is experienced by a lot of people, even now as I write. People take loans for different pressing reasons, some of which is used to service a short term vacation plan, emergency situation, school tuition, or for capital on investment. There are loans made available by more corporations today, than ever existed. But it is all juicy and interesting, until it is time to pay back what you borrowed. That's where the problem starts.

There are a few important pointers to note here

• Whomever loans you money does not wish for you to die
• It is important to own up to the responsibility you bore with the loan taken
• Keep the communication channel open, between you and the lender
• Do not borrow money for consumables; such as automobile purchase, spending at the club (epic fail), or to organize a party, et.c.
• Nine out of ten loans taken are accompanied by agreements. While going through such agreements, and you are in doubt, please consult a lawyer or seek the help of a financial expert to interpret the grey areas for you.
• Use short terms loans to service business endeavors like LPOs
• Any loan that spreads repayment for more than ninety days, is a long term loan.
• Use long term loans to service long term businesses or projects
• Ignorance is a major issue, but not an excuse. 

A few callers last night pointed out a major area of concern that borders on the terms and conditions surrounding the interest rates placed on such loans, and how the lending company explains such terms to the customers (in this case the borrower). A vital example is when you are told about the percentage on each installment.  Say, it is meant to be 5%, you will realize, in a few cases, a clear explanation to show it is 5% times 12 months (in the case of one year repayment), and not 5% on the principal. Also ensure you issue an instruction to your bank to effect a direct debit on your account, in case you are a salary earner. This will greatly eliminate chances of defaulting or delayed payments.

Ultimately, it helps greatly to ask a lot of questions, despite the desperation surrounding the need for such funds.

Consolation lies in the possibility that when such issues are shared among friends, or relatives, this could provide some sort of assistance. Otherwise, resort to prayer, in the light of applying some of these preceding principles. Always remember that you can negotiate the terms of your repayment (as in the case of high interest rate accruing on the loan), whenever you are having problems paying back. Do not lose hope.

Have you been in serious debt. What did you do to offset it?