How To Content

Loans can help you solve real problems — but only if used wisely. Rushing into the wrong loan can damage your finances for years. Here’s how to avoid the most common mistakes.

• Never borrow more than you need. Extra money may feel good now, but you’ll pay interest on every naira. Borrow only what you can repay comfortably.
• Avoid payday loans and quick-cash lenders. These loans often come with extremely high interest rates (up to 50%+ per month). They may look easy but trap you in debt cycles.
• Check for hidden fees. Processing fees, early repayment penalties, account maintenance charges — even small percentages add up. Read all terms before signing.
• Understand the interest type. Is it flat, reducing balance, or compound? A 24% flat rate is very different from 24% reducing balance. Ask for the full repayment schedule.
• Don’t ignore the repayment timeline. A short-term loan with big monthly payments can crush your budget. Make sure the loan duration fits your cash flow.
• Avoid applying for multiple loans at once. It lowers your credit score and shows lenders you may be struggling. Apply only after you’re sure of your choice.
• Ask questions. If anything is unclear — fees, rates, conditions — ask. Don’t sign what you don’t fully understand.

👉 A good loan helps you build. A bad loan creates stress. Be informed, stay alert, and borrow smart — your future self will thank you.

• Cut what you don’t miss — unused subscriptions, daily treats, impulse apps.
• Use “swap, not stop” — movie night at home instead of cinema, homemade lunch instead of takeout.
• Build in guilt-free fun money — yes, fun and savings can co-exist.
• Focus on the reward: your goal, not the grind.
• 👉 Saving smart means progress without punishment.

• To avoid impulse buying, sleep on it — if you don’t want it tomorrow, you didn’t need it today.
• Ask: “Can I afford this twice?” If not, think twice.
• Compare prices — don’t get fooled by the “Only 3 left!” drama.
• Consider the upkeep — it’s not just the gadget, it’s the batteries, updates, and repairs.

👉 Spend big only when your mind — and your money — are both ready.

• Track all your income — where your money goes, your habits grow.
• Set aside “off-limits” cash the moment you get paid — savings first.
• Shop once, not daily — bulk buying helps you spend less overall.
• Be careful when taking salary advances — they keep you in the same cycle.

👉 You work too hard to stay broke — plan it, or lose it.