It usually starts small. You borrow ₦10,000 from a loan app to settle school fees or cover food before salary. Before you can keep track, you’re juggling 15 calls from four loan apps and panicking at every phone ring or door knock. Next month you need another ₦20,000 for transport or medical bills. Before long, you’re juggling four apps, dodging endless calls, and panicking each time your phone rings. For thousands of Nigerians, this is reality.”

Loans can be used to a person’s advantage. To pay off urgent bills, invest in a business, or even settle medical emergencies. At the same time, loans can become a trap. Harassment, shame messages to family, and blackmails are now common occurrences. 

But, debt is not the final sentence. One can always regain control with the right plans. 

1. Keep Track of Everything You Owe

Do not “look away.” Write down all debts:

• Lender’s name.
• Amount owed.
• Repayment due dates.
• Interest rates.
• Monthly repayment commitments.

Sometimes,seeing everything spelt out helps you know how urgently you have to act.  

2. Rank Your Debts by Urgency

Focus on the loans draining you the fastest.

• High priority: Loan apps with 25–40% monthly interest, payday lenders, loan sharks.
• Medium priority: Cooperative loans, salary advances.
• Lower priority: Family loans, bank loans with lower annual rates (18–24%).

Example: If you owe ₦50,000 on FairMoney at 30% monthly, ₦20,000 on Carbon at 25%, and ₦100,000 to your cooperative at 10% annually—try to dissipate FairMoney first. That interest will cripple you if left.

This is called the avalanche method—clearing the highest interest debt first to save the most money.

3. Use the Snowball Method 

If big numbers discourage you, try the snowball method:

• Pay minimums on all loans.
• Focus extra cash on the smallest loan.
• Once cleared, move to the next smallest.

The psychological win of clearing debts quickly can keep you motivated.

4. Never Borrow to Pay Another Loan

Many Nigerians fall into this hole—using Loan App A to settle Loan App B. That’s digging a new pit to cover an old one. If you must refinance, do it the right way:

• Salary-backed bank loans.
• Cooperative loans with longer repayment windows.
• Negotiated restructuring from your current lender.

Avoid “loan recycling”. 

5. Negotiate with Your Lenders

You may not realize it, but lenders prefer negotiation to default. 

Ask for:

• Lower interest rates.
• Extended repayment terms.
• Temporary pauses (grace periods).
• Debt settlement discounts.

Sample script:
“I’m committed to repaying, but my current plan is not sustainable. Can we restructure so I can keep paying consistently?”

FCCPC regulations require fair treatment, so use that to your advantage.

6. Create a Realistic Budget

Without a budget, debt repayment becomes guesswork.

Steps:

1. List total income 
2. Break expenses into:
   • Essentials / Needs
   • Loan repayments.
   • Savings (even ₦2,000 counts).
   • Wants (Netflix, new clothes).
3. Stick to it strictly.

7. Grow Your Income with Side Hustles

You can only cut so much. To repay faster, earn more. Nigerians are naturally resourceful. Put in the energy. 

Options:

• Freelancing (writing, design, virtual assistance on Fiverr/Upwork).
• Online sales (thrift clothes, shoes, gadgets on Instagram/WhatsApp).
• POS agent business in your neighborhood.
• Cab driving (Bolt, Uber).
• Tutoring or extra lessons.
• Mini importation or dropshipping.

Tip: Dedicate 100% of side hustle income to loan repayment until you’re debt-free.

8. Set Clear Debt Goals

General promises like “I’ll pay off my loans” are weak. Be specific. Ensure there are exact amounts targeted to be repaid at particular times. This will help to reduce the total debt. Break them into weekly or monthly targets and celebrate small wins.

9. Avoid Lifestyle Inflation

Even when you get a salary raise, promotion  or side hustle breakthrough, don’t upgrade your spending until you pay off all your debts. The “let me enjoy small” mindset might return you to “Square one”. Delay luxuries like impulse shopping, expensive gadgets purchases, lavish owanbe events until you’re debt-free. 

10. Handle Loan App Harassment the Right Way

If loan apps you have borrowed from harass you:

• Save evidence.
• Report them to FCCPC.
• Leave honest reviews on Google Play Store to warn others.
• If defamed, seek legal redress.

Remember: harassment is illegal under Nigerian law.

11. Build an Emergency Fund (Even While in Debt)

It sounds impossible, but even saving ₦5,000 monthly protects you from borrowing again. Keep it in a separate account or app where you won’t touch it easily.

12. Keep Learning

The more you know, the less mistakes you make. Follow credible Nigerian finance sources like:

• Nairametrics
• Money Africa
• Arese Ugwu’s The Smart Money Woman
• Budgeting tools: PiggyVest, Cowrywise

Understanding how loans, credit scores, and investments work will keep you from repeating the debt cycle.

Start Your Journey Out of Debt Today

The steps are simple:

• List your debts.
• Prioritize or snowball.
• Negotiate terms.
• Budget wisely.
• Earn more.
• Save for emergencies.
• Keep learning.

Every repayment is a step closer to being out of debt . One repayment at a time, you’ll climb out of debt and breathe easy again.