What to do After Having Too Many Debts With Online Loan Apps and Couldn’t Pay Back.

What to do After Having Too Many Debts With Online Loan Apps and Couldn't Pay Back.

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Online loan apps have become popular options for individuals seeking immediate financial assistance. With just a few clicks on a smartphone, one can easily access loans from various lenders without the hassle of traditional bank procedures. While these apps offer convenience and quick access to funds, there are negative effects that come with accumulating too many loans from online loan apps. In this article, we will look at the reasons why one should avoid accumulating too many loans from loan apps in Nigeria, what to do after having too much debt with online loan apps and couldn’t pay back, and provide answers to frequently asked questions regarding this issue.

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Why One Should Avoid Accumulating Too Many Loans from Loan Apps in Nigeria

  • Financial Burden: Accumulating too many loans from online loan apps can quickly become overwhelming and lead to a significant financial burden. Each loan comes with high interest rates and repayment periods that may not align with one’s financial capability. This could result in a cycle of borrowing and struggling to meet repayment obligations, ultimately leading to further accumulation of debt.
  • Negative Credit Score Impact: Unpaid or delinquent loans from online loan apps can have adverse effects on one’s credit score. A poor credit score makes it difficult to secure future loans or financial assistance from traditional lenders. This could hinder one’s ability to fulfill other financial obligations such as acquiring a mortgage or loan for a car or education.
  • Increased Stress and Mental Health Issues: The constant pressure and stress of managing multiple loans can lead to anxiety, sleepless nights, and overall mental health issues. The fear of defaulting on payments, dealing with debt collectors, and constant reminders of financial obligations can take a toll on one’s emotional well-being and overall quality of life.
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What to Do After Having Too Many Debts With Online Loan Apps and Couldn’t Pay Back

Assess your Total Debt: The first step in addressing the situation is to gather all the information regarding your outstanding loans. Make a list of all the loan apps you have borrowed from, the amount owed, and the corresponding interest rates. This will give you a clear picture of your total debt and help in formulating a repayment plan.

Prioritize and Negotiate with Lenders: Once you have a comprehensive list of your debts, prioritize them based on interest rates, outstanding amounts, and repayment terms. Reach out to each lender and explain your financial situation. It is important to negotiate for more manageable repayment options, such as extending the repayment period or reducing the interest rates.

Create a Budget and Stick to It: To regain control of your finances, it is crucial to create a realistic budget that aligns with your income and includes a debt repayment plan. Cut unnecessary expenses, prioritize debt repayment, and allocate funds accordingly. Consult a financial advisor if needed.

Consider Debt Consolidation: Debt consolidation involves combining all your debts into a single loan with a lower interest rate. This can make it easier to manage your payments and potentially reduce the total amount owed. However, it is important to thoroughly research and consult with a financial advisor before opting for debt consolidation.

Frequently Asked Questions and Answers

What are the consequences of not being able to repay online loan app debts?

When you are unable to repay your debts to online loan apps, there can be several consequences. It is essential to understand these consequences to make informed decisions about how to move forward.

  • Negative impact on credit score: Non-payment of debts can result in a significant drop in your credit score. This can make it challenging for you to obtain future loans or credit from financial institutions.
  • Collection calls and notices: Failure to repay your debts may result in frequent collection calls, emails, and notices from debt collectors. These communications can be stressful and intrusive, adding to the burden you are already experiencing.
  •  Legal action: In extreme cases, online loan app companies may take legal action against you to recover the debt. This can lead to court proceedings, judgments, and potential wage garnishment.
  • Additional fees and interest: Non-payment typically leads to additional fees and accrued interest, increasing the overall amount you owe. This can make it even more challenging to repay the debt in the future.
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What steps can I take to manage multiple online loan app debts?

If you find yourself overwhelmed with multiple online loan app debts, here are some steps you can take to manage the situation:

  • Assess your financial situation: Start by evaluating your overall financial picture. Take a thorough look at your income, expenses, and existing debts. Understanding your financial capabilities will help you formulate a plan to address your outstanding debts.
  • Contact the loan app companies: Reach out to each loan app company individually and explain your situation honestly. They may be willing to work with you to create a repayment plan or offer alternative options to alleviate the burden. Consider debt consolidation: If you have multiple loan app debts, consolidating them into a single loan with a lower interest rate may be beneficial. This can simplify your repayment process and potentially reduce the overall amount you owe.
  • Seek professional assistance: If you feel overwhelmed or unsure about how to handle your debts, consider reaching out to a financial advisor or credit counseling agency. These professionals can provide expert guidance and help you navigate through the complexities of debt repayment.
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What are the alternatives to consider when unable to repay online loan app debts? 

If you are unable to repay your online loan app debts, there are several alternatives you can consider:

  • Negotiate with the loan app companies: Reach out to the loan app companies and try to negotiate a reduced settlement amount or a repayment plan that fits within your financial capabilities. It is in their best interest to recover at least a portion of the debt, so they may be open to alternative arrangements.
  • Explore debt settlement options: Debt settlement involves negotiating with your creditors to settle the debt for a lump-sum payment, typically for a reduced amount. This option can be an effective way to alleviate the burden of multiple debts.
  • Bankruptcy: In extreme cases where your debts are overwhelming and you cannot see a feasible path for repayment, filing for bankruptcy may be an option. However, it is crucial to consult with a bankruptcy attorney to understand the long-term consequences and eligibility requirements before considering this route.
  • Seek financial counseling: Enlist the help of a financial counselor who can provide personalized advice and assistance in managing your debts. They can help you create a budget, negotiate with creditors, and develop a repayment plan that works for you.


While online loan apps provide quick access to funds, it is essential to exercise caution and avoid accumulating too many loans from these apps. The negative effects of accumulating too many loans can result in a significant financial burden, damage to credit scores, and impact one’s mental health. If one finds themselves in a situation where they have accumulated multiple debts from online loan apps and cannot pay them back, it is important to take proactive steps such as assessing total debt, negotiating with lenders, creating a budget, and considering debt consolidation. By taking control of your financial situation and seeking assistance when needed, you can navigate your way out of debt and regain stability in your finances.

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