Debt Management in the Face of Rising Costs in Aba: Personal Finance Reflections

INTRODUCTION

Everywhere you turn in Nigeria today, things are getting more expensive. From food to transportation to even basic services, prices keep climbing and people are feeling the squeeze.

In a city like Aba, where many residents are hustlers, traders, artisans, and small business owners, the rising cost of living often pushes people to depend on debt to stay afloat. While borrowing itself is not always bad, how we manage that debt in tough times can either keep us stable or drag us deeper into financial struggles.

Living in Aba right now comes with its own unique financial challenges. Prices are climbing, from the market stalls at Ariaria to everyday household expenses, and it feels like your money has a shorter lifespan than it did just a year ago. For many people, this situation makes debt a tempting lifeline — but without strategy, it can quickly turn into a trap.

In this post, I want us to have a real conversation about how to manage debt wisely in the face of rising costs not just here in Aba, but in other regions, and how personal finance discipline can make a difference.

WHAT IS DEBT?

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Just like in broad finance scope where corporate institutions lend and borrow money to meet their financial needs, individual or persons also lend and borrow to one another to also meet their financial needs.

Looking at debt from the personal finance perspective, debt is the sum of money that one owes a financial institution or to an individual with or without interest payment.

In formal financial sector, most lending is usually done with an agreement of paying back with an interest. The interest is charged whether for short or long term loans.

Let’s be real: life in Aba can be demanding. A shoemaker in Ariaria market may need to borrow ₦50,000 to buy leather and materials when prices suddenly jump. A foodstuff seller at Ahia Ohuru might collect goods on credit from a wholesaler because she doesn’t want to lose her customers when rice or beans prices increase overnight. Even salary earners in Aba borrow from cooperative societies just to meet basic household needs when their pay no longer stretches till month-end. These are everyday realities. But when debt is not managed wisely, it becomes a trap.

Practical Steps to Manage Debt in Times Like This

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• Know Your Debt Size Clearly
  Many people in Aba borrow small-small from different places—market credit, cooperative loans, even mobile lenders. The problem is, when you don’t calculate everything together, you underestimate how much you owe. Writing down all debts and their repayment dates gives clarity.

• Prioritize Needs Over Wants
  With costs rising, it’s tempting to keep living the way we used to, but that mindset fuels unnecessary debt. For instance, a trader in Cemetery Market might dream of upgrading her shop decoration, but if repaying debt on goods is still pending, the shop beauty can wait. Focus on feeding, rent, transport, and children’s school fees first.

• Negotiate and Restructure
  In Aba markets, relationships matter. If you owe a supplier, don’t hide. Approach them, explain the situation, and negotiate a longer payment period. Most wholesalers prefer you pay small-small consistently than disappear and lose trust.

• Seek Additional Income Streams
  Aba is known for creativity. If you’re already repaying a loan, think of small add-ons to your hustle. A tailor struggling with fabric costs might start selling sewing accessories. The little profit can go directly into debt repayment.

• Cut Cost by Community Living
  Families in Aba often buy foodstuff in bulk at the Relief Market to share among households. This reduces cost and minimizes the need for borrowing for everyday meals.

Conclusion

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Debt itself is not evil, especially as most nations are having economic challenges like Nigeria. The real danger is unmanaged debt. In Aba, where resilience and creativity define daily living, people can survive these rising costs by being intentional about how they borrow, spend, and repay. At the end of the day, managing debt is not just about money—it’s about peace of mind.

Let’s now discuss in the comments session:

How are you personally managing debt and rising costs in Aba or your own city?

Do you believe borrowing is unavoidable right now, or do you think with strict budgeting we can avoid it completely?