How to Outsmart Loan Apps from Harassing or Defaming You —Protect Your Mental Health

Loan apps promise quick cash, but for many Nigerians, they’ve become a nightmare. Imagine waking up to hundreds of missed calls, threats, and even your personal details being posted online—all because you missed a repayment deadline. These apps don’t just demand their money back; they go as far as harassing your family and friends, ruining your reputation overnight.

But what if I told you there’s a way to beat them at their own game? If you’re tired of the stress, embarrassment, and anxiety that comes with loan apps, this guide will show you how to protect yourself, avoid harassment, and keep your mental health intact. Keep reading to learn how to stay one step ahead of these predatory lenders.

Loan Apps Are Destroying Lives—Here’s How to Outsmart Them and Stay Safe

1. Borrow from Reputable Loan Apps

To save yourself from defamatory posts and maintain peace of mind, take loans from reputable companies and avoid shark loans. Some of the best loan apps are Carbon, FairMoney, and Branch. I have tested these three loan apps, and they’re good—though some have high interest rates, they don’t defame borrowers or start calling contacts to spoil their reputation online.

In fact, loan apps like FairMoney allow individuals to extend their loan repayment due date with a small fee. This means if you default, you can pay a token to extend the loan—unlike shark loans that will start calling your contacts and harassing you.

ALSO READ: How To Qualify For A Business Loan In Nigeria

2. Check for Licensed Loan Apps

If the loan apps you are borrowing from aren’t licensed, you’re adding another problem for yourself. To avoid any form of defamation, the best approach is to register with loan firms that are licensed by the CBN. No licensed loan app will call your contacts, post your pictures on social media, or threaten you.

ALSO READ: Are Microfinance Loans Right for Nigerian SMEs?

3. Clear Your Phone Before Taking a Loan

This is one of the biggest mistakes people make when obtaining loans. The moment you grant these apps access to your contacts and messages, they automatically save all your contacts in their database. If you default on payment, they will defame you.

How to bypass this:

• Go to your phone settings and do a Factory Reset.
• Save all your contacts to your Gmail account.
• After resetting, store only unknown or fake contacts on your phone.
• Install the loan app and register.

This way, when you take out a loan, the loan app will capture fake contacts, making it impossible for them to defame you since the contacts submitted aren’t real. After the loan has been disbursed, you can uninstall the app and repay the loan when due to avoid future inconveniences.

Additionally, if you can’t afford to erase your phone data, simply migrate your contacts to the cloud and keep only irrelevant or fake contacts on your phone during registration to avoid defamation by shark loans.

ALSO READ: How Safe Are Loan Apps in Nigeria?

4. Use TrueCaller to Block Spam Calls

It is common for loan apps to frustrate you with calls and provocative messages, which can affect your mental health and overall well-being. To bypass this, simply install TrueCaller on your phone to block all spam calls.

You can also set the app to only allow your saved contacts to call you. This way, you won’t receive their threatening messages and calls. However, ensure you repay your loan when you have the means.

ALSO READ: 15 Things to Consider Before Borrowing Money from Loan Apps

5. Block Your ATM Card

If you link your ATM card to any loan app, they might debit your account automatically without your consent. To bypass this, simply block your card or get a new ATM card. This way, no loan app will be able to debit your account without your approval.

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6. Pay Back Your Loans

One of the best ways to protect your mental health is to pay back your loans, especially to legitimate loan apps. You can repay little by little until you clear your balance.

However, if the interest has accumulated beyond what you can afford, you can pay back only the principal loan or negotiate with the loan app for a discount to clear your debt.

7. Avoid Borrowing from One Loan App to Pay Another

Borrowing from one app to pay another will only make your situation worse. Avoid this habit if you don’t want your mental health to be at risk.

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