Have you ever found yourself in a situation that made you, or pushed you to borrow a loan from mobile loan lending app that you later regretted it?. If your answer is yes, YOU ARE NOT ALONE!

keep reading…

Here’s my ordeal. One morning to be specific on a Monday at exactly 6:30 am. I woke up thinking it’s my alarm ringing, just as I was about to snooze it! The reality slap hits me hard, that these were numerous calls, and over 40 messages sent by collection agents from different lending apps, claiming a repayment of loan which was not even due on the material day.

You can imagine how my day started. They called and sent messages on WhatsApp, Text Messages every passing minute, threatening and giving ultimatums “

Below are just some of the messages from digital lending apps that were sent by their agents:

• “DEAR CUSTOMER YOUR LOAN IS DUE TODAY, PAY YOUR LOAN BEFORE 10:00am.NOTE,OUR LOAN PRODUCTS HAVE NO GRACE PERIOD!”

• “Cheki!!!SILENCE MEANS YOU DON’T WANT TO PAY YOUR LOAN WHICH IS ALREADY OVERDUE, AND WE ARE FORCED TO PUT YOU IN EXTERNAL DEBT COLLECTION,IN A FEW.
• WE ARE CONTACT ATLEAST 15 CONTACTS OF YOUR PHONEBOOK PER DAY REGARDING YOUR LOAN AS PER TERMS AND CONDITIONS WHICH YOU AGREED UPON. PAY NOW!!! PB Number”

• “PLEASE TAKE THIS MATTER SERIOUSLY, & BE RESPONSIBLE,YOU HAVE DEFAULTED!! Your Loan is LATE and No Effort Has Been Made To Clear. You Are In BREACH of Contract of Our TERMS OF SERVICE.
• We Will not Keep Up With DEFAULTERS Past 2PM But Report Them For BLACKLISTING PERMANENTLY. Kindly Pay Now And Avoid this. You Can still Take Another Loan Balance: {{left amount} CLEAR NOW &BEFORE 2PM.

• “Dear  holder of ID NO, Further to my previous correspondence, I’m contacting you once again on behalf of name of the App”.“Epuka being listed negatively with CRB! Part of the message read”.

Can you relate with above text messages?

My friend, the pressure was too much for me to bear .I felt Frustrated, drained, and overwhelmed, simply pushed to the limit. I had no other option, other than to switch off my phone the whole day to be at peace.

If you have been in this situation before, how was your experience of repaying the loan? Knowing this is a never-ending cycle of securing and accumulating unhealthy debts that are beyond one’s means.

Here is the thing. From time to time, while you are browsing on your phone, Tablet, Pc, etc. You are more likely to see ads running through your device, prompting you to click or rather download the application available on Playstore!

Since the outbreak of the coronavirus pandemic in 2019, many people were rendered jobless, businesses collapsed, and this greatly affected the global economy.

This situation led to individuals been forced to adjust to harsh, high cost of living standards, which was attributed to the effects of a deadly pandemic. Others have had a fair share of struggles in meeting their financial obligations.

The aftermath brought about anxiety and human suffering resulting drastic measures “QUICK FIX” borrowing money from mobile loans apps, relatives, Shylock’s and other unregulated financial sectors to meet daily living challenges .

Since everyone was greatly affected by the Corona Virus Pandemic in one way of the other, it was extremely hard to find someone/financial institutions to assist, lend money to cater for the emergent needs.

The despairing state of debts, recurrent bills coupled with the loss of jobs lead many to seek alternatives ways to eke a living. Some Problem solving strategies were healthy while other ways were absolutely unhealthy ways of coping.

Indulging in Alcohol Use and other mind/mood-altering substances, as well as borrowing heavily from online available platforms without any source of income to repay the monies are just some means in which people used. The situation was bad!

Maybe just like me, you had exhausted all the savings during lock down, you had to cater for the rainy day and by that time all you needed is a quick fix to sort an emergency such as school fees, rent, transport, medical bills the list is endless.

The next thing you realized is that you have started the process of applying for an unplanned loan which were sent to your mobile phone but charges exorbitant interest rates with a short duration of repayment.

You only need to fill in your particulars, agree to their terms and conditions including providing referees and access to your phone book, so that should you default on paying the loan the provider can then contacted them to recover their monies.

Can you imagine the kind of risk that you take, by allowing access to your Phone book, data, and location  to strangers? I GUESS THE RISK WAS WORTH IT AT THAT TIME

What that does, it leaves you vulnerable to more other loan lenders. Here in Kenya, there are over 20 Mobile loans applications available on different online platforms that do not require a collateral or in other words security for one to qualify for a loan.

Please note, that within a period of two weeks (14days) the agents from these mobile loan providers, they will start calling you long before the due date. Moreover, they would start sending threatening messages to your phone every 10 minutes. Causing a lot of disruptions with your schedules, meetings, work. You cannot be at peace with this!

The flips side of this unsecured loan is that they lend you Ksh 1000 which they reduct 30-40 percentage. This means,what you will receive is 600-700 shillings less to be repaid back (Ksh 1000) within a period of 7-8days.

As a result of this, you end up paying Ksh 800 more. This  leave one more frustrated, anxious than you were before and the psychological burden of shame and guilt that it may cause you.

Just the other day, a friend was contemplating to commit suicide, this is after a loan she was not able to repay a loan she had borrowed a week/s ago. The cause of her trouble, started when the agents from mobile apps reached out to her friends, colleagues, and even her employer at that time through Messages, Calls, and even worse a WhatsApp group was created to fundraise to aid service her loan. The embarrassment underwent.

The shame that gripped her life at that time was unbearable, her blood pressure went up, she finally got into a panic mood. Her psychological, emotional, physical, and social well-being was significantly affected.

I couldn’t believe it, the whole ordeal happening to someone known to me but I was not in position to help. My advice to you, if you come across this kind of advertisement online, PLEASE don’t click and download the applications. IGNORE IT

If you are in this kind of distressing situation, here is what  you can do….

 Take Aways For You.

• Accept/ Acknowledge the Existence of a Problem.

Acknowledging the problem is the first thing to kick out compulsive debt habit. If you still denying the fact there’s a problem you can never work or start working on it.

• Do Cost-Benefit Analysis ( CBA)

Evaluate what are the benefits of borrowing the money and the cost of repaying. Benefits and cost which out way the other?

• Decide on Plan of Action

Putting up an elaborate plan, get identify what need to be sorted first, how you are going to sorts the existing debts.

• Avoid Borrowing If You Can

Never borrow money to spend on luxury or wants. For instance securing a loan to buy household items, parties, clothing, etc. IMPULSE BUYING

• Live Within Your Means.

This might sound like a cliche, however, it might be a helpful way to help you to adjust your living standards and plan for available resources. You are not in competition with anyone. Do not spend what you don’t have or can’t afford.

• Don’t fall for higher limits and coupons, that are used by the Apps to entice you to keep on borrowing.

Resist the temptations and the urge to borrow. This will continue to cripple your finances as well as influence your thoughts and feelings. You cannot do things the same way and expect to achieve different results

• Uninstall The Loan Apps On Your Phone that can easily Trigger You Back To the Unhealthy Habit Of Borrowing.

This might sound easy, but can be challenging. However, this will go a long way in avoiding the temptations of accessing the Apps. Out of sight out of mind.

• Start Paying Your Loans ASAP.

This is just one way of getting out of unhealthy debts. Start paying what you can afford first, as it will reduct the monies owed to the lending agencies.

• Block The Ads or Pop-ups on your device.

If you are not able to block them from your browsing/ web, you can talk to a technician to assist in blocking the invading apps on your phone/ device.

• Reach Out For Help.

Sometimes the pressure from agents, debt collectors can be overwhelming and you might not know exactly what to do about your situation. However, family members and close friends can be a source of help. Don’t borrow from other apps to repay the existing loans as you will get stuck in the vicious circle of debts.

• Create a Budget

This will help you to cut cost and avoid overspending, impulse buying on things you do not need. Look for alternative ways of settling or servicing the debts from Family and close friends.

Final Word!

CBK which is a regulatory body for Banks, Microfinances and Sacco’s. PLAYSTORE needs to investigate and take necessary action to stop this exploitation, harassment of desperate and innocent Kenyans by some of these digital lending apps.

If you have been in this situation and you manage to overcome it in a healthy way. We would like you to share your experience, insights with other readers in the comment section.

About the Guest Writer,

Hannah Wangari,

A patriotic Kenyan, wife and mother of three lovely girls.