The UAE Central Bank conducted a survey recently in which it said more than 40 per cent of residents have debts, while 48 per cent did not know how to get rid of their debt problems.
At one time or another, most of us have been faced with the frustrating situation of being unable to pay our debts. It feels unfair that some creditors are unrelenting in their demands for late payments and resort to harassing tactics. This is an unpleasant state of affairs for all parties involved; neither creditor nor debtor benefits from sleepless nights and hours spent trying to convince the other of their point of view.
Debt management is a support system for those who want to come out of the entanglement of various financial debts and obligations. Our team of experts offer various solutions and options to minimize the debt burden, that way you can concentrate on your career or business with more hope and enthusiasm.
Debt is money that you owe to another person or business. You can get into debt if you borrow money from a bank, credit card company, family member or friend.
If your debts are getting out of hand, it’s time for some serious Debt Management Solutions in UAE! But what are these? We have here 5 Debt Management Strategies – either you can use to reduce it or eliminate it – either by: Debt consolidation, Debt Settlement, Debt Restructuring, Bankruptcy and Putting up a great defense in legal way.
So, what are these? Let’s find out!
First of all, see your financial report for any possible debt management solutions in UAE through the eyes of the credit reports. This report will show you the “history of your past transactions for open accounts, like credit cards”. It is essential to make sure that there are no mistakes and if any errors do occur, they need to be corrected or at least explained.
The best way to manage your debt is through Debt Consolidation in UAE. There is more than one kind of debt that you may have, like credit cards, car loans, home mortgages, or personal loans. A debt consolidation program helps to combine all these accounts into one monthly payment which is easy to manage. It sounds good because it will be easier for you to make a single bigger payment rather than several smaller ones. Also, with debt consolidation services in UAE, you can get a lower interest rate too.
Another strategy is to have a Debt Settlement in UAE which means that with your creditor’s approval, your debts are paid off for less than what you owe. Usually, it requires the help of a professional debt settlement organization to negotiate this with your creditors so it is important not to try this alone.
You may also consider getting a Debt Restructuring in UAE for your credit card debt, home mortgages, or personal loans to lower the monthly payments you make. In order to qualify for it, you must owe more than twenty-five thousand dollars and have a good reason why it is hard for you to pay back now. It is true that this sounds good, but changing the terms of your debt may negatively impact your credit history.
A strategy with bankruptcy in UAE will be an option if you are thinking to file for bankruptcy protection which means you don’t have to pay back your debts at all. However, being bankrupt comes with some consequences too that you need to think carefully before you do this. It will stay on your credit report for ten years, which may make it hard for you to borrow money afterward, and find a job might be much harder too.
At last, but not least, there is the strategy of putting up a defense in a legal way to manage your debt which means you hire an attorney to handle your creditors and negotiate with them. This is often the best option for people, if you don’t pay back on time and only have a small bit of credit history.
So, there you go! These Debt Management Strategies in UAE will help you manage your debt better and lower it so that you can live a happier life.
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