Where I grew up in Nigeria a small town where people are trying their hardest just to make a living. A few years back people of this town got to know of a company called LAPO, it is a microfinance bank, and what this company does is lend people money and you pay it back with interest. This sounds amazing to people because for them it creates an opportunity to start something with their lives. This company became popular because everyone wants to borrow from them which they did and the scope behind it was as a starter you will receive a certain amount of money and if you pay that back you will be given the chance to borrow more than what you previously borrowed.
Almost everyone I know borrowed money from this company and at first everything seems okay but later they couldn’t cope and pay can’t pay back but not everyone have this problem and some of these people were able to pay back and till now some people are still borrowing money from this company and still paying back on time.
What went wrong
There is nothing bad in borrowing money, sometimes we all need a lift to be able to do better. Most of these people that borrowed money from this company did not have a proper plan on how to manage the money, most of them borrowed to start up a business that they don’t know will work out and their perspective was to start small but the truth is most of this business need finance. Most people that were able to pay back use the money to support their existing businesses and everything worked out for them.
Some people have plans that should have worked out with the money they borrowed but some of these people don’t do well under pressure, the fear that they might not meet up and make so many bad decisions is what stops some people to utilize the money. Some of these people are not business oriented and the knowledge to manage the business effectively is what they don’t have and they end up wasting money on what they can’t handle.
Not bad
There is nothing bad in borrowing money when you have the plan to utilize it well and you are not the type that folds under pressure because borrowed money comes with its pressure especially when the day you want to return the money is already near this might affect us psychologically. People borrow money for different reasons but don’t be the type that borrows money without a plan.
