Iking Ferry, founder of Pulseford Business School, has outlined seven practical steps to help Nigerians escape the trap of loan app debt. In a detailed Facebook post, he described many loan apps as operating like debt collectors, street thugs, and emotional terrorists, using fear as a weapon against borrowers. Ferry emphasized that these lenders seek not just repayment but also to undermine borrowers' confidence, peace of mind, and mental health.
Step 1: Prioritize Health Over Debt
Ferry urged borrowers to stop fearing debt and put their health first. He noted that no debt is worth a life, and if a person has experienced severe stress symptoms like fainting, the body is in emergency mode. He advised eating well, sleeping, reducing stress, and openly discussing the situation with family members rather than carrying the burden alone.
Step 2: Write Down the Full Debt List
To fight debt effectively, Ferry recommended creating a written inventory of all loans. The list should include the loan app name, amount borrowed, total amount demanded, due date, daily penalty, and total outstanding. He stated that debt kept inside the head leads to depression, while debt on paper enables strategy.
Step 3: Stop Borrowing to Pay Borrowing
Ferry warned against the common cycle of taking a new loan to repay an existing one, which he said leads to owing multiple apps and entering a financial prison. He insisted that borrowers must stop this practice immediately.
Step 4: Negotiate Respectfully
He advised sending a polite message to lenders acknowledging the debt, explaining financial difficulties (e.g., health issues), and proposing a weekly or monthly payment plan with a request for restructuring and penalty waiver. If the lender refuses and continues abusive behavior, borrowers should not argue.
Step 5: Pay the Principal First
Ferry, an accountant, revealed that many loan apps can reduce interest but do not disclose this. He recommended making small, consistent payments—such as ₦5,000 weekly or ₦20,000 monthly—toward the principal. Consistent payment gives leverage in negotiation, reduces fear, and diminishes threats.
Step 6: Take Back Control of Your Phone
Loan apps often operate through phone access. Ferry advised changing passwords, removing app permissions for contacts and media, blocking abusive numbers, and enabling Do Not Disturb. He also suggested informing family members to ignore calls about the debt, noting that shame tactics lose power when borrowers are bold.
Step 7: Create a Debt Exit Plan
Finally, Ferry recommended dividing any incoming money into three buckets: survival (food, health, transport), debt payment (consistent), and small savings (even ₦500 daily). Saving, even a small amount, prevents future reliance on loan apps during emergencies.
Public Reactions
Ferry's advice sparked discussion on social media. Commenter Jimmy Jay Fallon noted that some lenders fail to honor agreements after partial payment, while Promise Fajilade expressed defiance, saying debt does not cause depression. Nonny J remarked that debt steals tomorrow to decorate today, and freedom begins with self-control.
In a related report, Legit.ng covered a lawyer's explanation of five things Nigerians should know about loan apps, including legal prohibitions against harassment and unauthorized contact with borrowers' relatives.
