Why is it always difficult to pay back loan?

Maphalle

Member
Paying back the loan should not be difficult. When you find it difficult to pat the loan it simply means you are not the kind of person who like to share with others. When you took the loan you knew you have to pay back.
 

Abigael

Valued Contributor
I have also ever felt that difficulty in paying back the loans. I guess it is because once you have worked hard and earned some money, your first instict will be to spend it on yourself and not give it out to someone else. So paying back the loan with your hard earned cash becomes so difficult.
 

Alexandoy

VIP Contributor
Maybe most of us have experienced the difficulty of paying back the loan. It was due to neglect in handling the finances. What I did one time was to sell an asset to clear all my debts because it was giving me stress to think that I have many payables. After that I made it a point to think twice before borrowing money again
 

Olajidey

Active member
Reasons, why people find it difficult to pay back a loan, is lack of a plan. Some people collect a loan to buy a car or build a house, why will you use loan which is supposed to help your business grow to build a house and you expect the business to give you multiple outputs profit. So wrong use of loan money is a factor that makes pay back of loan difficult.
 

Snazzy001

Member
it is not difficult to pay the loan or money you borrowed from someone ,what causes the real problem is lack of planning and initiative .some people know vividly that they have no source of income yet they borrow money ,where do they expect to get the money and pay back .why some people don't even plan to pay on the agreed date
 

Setfragil

Member
It is always difficult to pay back loan when the purpose for which the loan was used for is not reasonable or does not bring yield profits that will be able to pay back the loan. When you take up a loan to do parties it will be very difficult to pay back the loan because parties are expenses they don't generate income. Before you give out loan to anyone you must make sure that the purpose for which the person want to take the loan is something that is profitable.
 

Godsplan

Member
I would say it's always the policies that guides the loan collected that makes it difficult for many people to even collect loans not talking of paying. The main policy that causes much of the problems is just the interest rate. If the interest rate is high, definitely it would not be easy for the person to rise the money easily especially if his or her income source is not very decent.
 

Adetayo100

Active member
It is always difficult to pay back bank loan because of the high interest on such loan, most banks charge as high as 23 percent to 25 percent on there loans. Most people taking loans from banks don't have a good business plan before takings such a loan hence when the loan has been approved they spend it anyhow.
 

Godslamp

Active member
Nigerian banks give out loans with an average interest rate of 25%. With such a high interest rate, businesses are unable to find suitable capital to fund their enterprise.
Even when a business does succeed in securing the necessary capital, a huge chunk of their returns ultimately goes to the repayment of their loan.
 

Segat

Active member
Another thing to note is that any business you are taking loan for should not be anyhow business but the one you really know about and make sure you make sure it is a lucrative one which you can beat your chest on.
 

Segat

Active member
Paying back of loan is one of the major problems facing the financial institution and its really making the financial institution to struggle. Even though sometimes there is a collateral but all the same it is somehow difficult to pay it back for some individual. Loan should only be taken for something that will bring profit, that is the first thing to note.
 

Sprite1950

Active member
People take out loans that are too big for them and they want something so badly they forget that they will probably paying back the interest long after they have got bored with the item. I have had car loans before but always made sure I had enough money to pay them back.

Sometimes a person's circumstances can change. They may be able to afford it when they take it out but unexpectedly lose their job making it impossible to pay it back.
 
I always ask this question, because am wondering why do people or organization find it difficult to pay back loan.
Some persons who sells food stuff within my street has been continually being harassed by a micro finance bank where the had collected some amount of loan in order to promote their businesses and these loans are to be paid back on instalments weekly which they agreed but I noticed that one its the day for payment, you will see them running helter skelter looking for someone to borrow from in order to pay back.
Same thing happened to a company where I was working sometime back, my boss collected a car on loan from a commercial bank to pay some percentage every month but I used to marvel once its the date for payment my boss will keep giving an excuse.
Why do people find it difficult to pay back loan?
 

Briangsam

Active member
That silly attitude is in many people's character. They come to you, crying before you give them the money. But when it is time to pay back, it is always a problem. They even badmouth you and call you imprintable names like a wicked person or even a stingy person just to guilt trip you.
 

Abbeyola

New member
I always ask this question, because am wondering why do people or organization find it difficult to pay back loan.
Some persons who sells food stuff within my street has been continually being harassed by a micro finance bank where the had collected some amount of loan in order to promote their businesses and these loans are to be paid back on instalments weekly which they agreed but I noticed that one its the day for payment, you will see them running helter skelter looking for someone to borrow from in order to pay back.
Same thing happened to a company where I was working sometime back, my boss collected a car on loan from a commercial bank to pay some percentage every month but I used to marvel once its the date for payment my boss will keep giving an excuse.
Why do people find it difficult to pay back loan?
It is always difficult to pay back loan especially collected at the starting point or commencement of a business enterprise or organization because those new businesses enterprise may take some time before it start making it own profit and foot it bills and expenses without any forms of external assistance, but when the business is not yet making profit and it pays back the loan with interest charges, then the operation of the business will be affected.
 

Unique23

Member
I always ask this question, because am wondering why do people or organization find it difficult to pay back loan.
Some persons who sells food stuff within my street has been continually being harassed by a micro finance bank where the had collected some amount of loan in order to promote their businesses and these loans are to be paid back on instalments weekly which they agreed but I noticed that one its the day for payment, you will see them running helter skelter looking for someone to borrow from in order to pay back.
Same thing happened to a company where I was working sometime back, my boss collected a car on loan from a commercial bank to pay some percentage every month but I used to marvel once its the date for payment my boss will keep giving an excuse.
Why do people find it difficult to pay back loan?
It is difficult for those people who does not know about type of business because if he get loss in business than it is difficult to pay back loan . In other case if the business give good response than not difficult to pay loan.
 

Samuel72

Verified member
According to my own point of view as a well experienced business man I don't believe it is always difficult to pay back loan it all depends on the type of loan you collect and also it all depends on what you use the money to do. if you collect a loan and use the money in starting a business you are not aware of and you do not know much about the business, you might end up unable to pay that loan. but if you use the loan for a good purpose and you get more profit from the business use the loan for. I don't think it will be difficult for you to pay back the loan
 

Teatea

Active member
It is very simple, people find it difficult to pay back loans because it is easy to spend money but hard to make money. Getting loans may seem stressful because of the processes involved but the stress is small compared to the one of getting it back. It is advisable to always have a solid plan the moment you get the loan, if you get a loan without first creating a strategy on how to get it back then it may be difficult to pay back.
 

Haypril

Active member
Business owners find it difficult to refund back borrowed money because they failed to analyse and meets to the requirements of setting up a business. Most of this businesses are ventured into without considering some factors. While some business owners has a nonchalant attitude towards their business. Not knowing when to invest and when to devices tragedy to succeed in term of competition.
 
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