Avoid getting in debt in the UAE by doing these
These days, getting in debt is a common problem that many people are faced with. This is simply because of unsustainable debt on cards and lack of ability to repay it. In fact, many people think of credit cards as a tool for easy money. However, the inability to handle it bothers them.
Sometimes, people use their credit cards to their maximum limits because they think they can return the money in time. This is one of the worst thing they do because they cannot predict the future and they don’t know what will happen in the future. Thus, they will find themselves in a huge debt. To avoid this situation, you should always spend within your limits. In addition, you should be always mindful of tomorrow.
Many credit card holders borrow money to bridge the gaps. For instance, they borrow the money to fund wedding parties, have holidays or make impulsive decisions. Suddenly, some unexpected situations such as job loss happens. This is the most common reason why a lot of people get in debt these days.
You may have always calls from banks or financial companies encouraging you to take some loans, but you shouldn’t get fooled.
What you should (and should not) do if you default on credit card debts?
The crimes related to credit cards can easily land you behind bars. According to Barney Almazar, a legal advisor, in the case of default payments, banks will deposit a security cheque for your payments. If the cheque bounces, the bank can use criminal charges against the defaulter. This can send you to the jail in the UAE.
But spending time in the jail does not mean you are free from the bother of debt. So, what should a person do in such a situation? Escaping the UAE surely won’t help. Almazar suggest to talk to banks. In most cases, people and the banks reach a settlement that is beneficial for both parties. Briefly, in this situations, you can talk to a legal expert such as a lawyer to find a way. There is always hope.
>Rethink of your situation and try to merge debt on different credit cards
>Explore the balance transfer facility by another card company. It usually offers interest-free period of three to six months.
>Approach banks to restructure the outstanding balance into a fixed-interest loan, which will stop the accumulation of heavy interest and save you from further late payment fees.
>If you are employed, take a salaried loan (a personal loan from your bank) to pay off high-interest debt.
>In case of redundancy, check if you have any insurance cover on the card. Unsecured loans usually have a credit shield.
>If none of these options are available to you, visit a legal expert, and explore your options.