I need advice to help me consolidate my credit cards and loans into one monthly instalment. I have one loan and three credit card payments due every month that are difficult to pay. The banks say I am not eligible for this kind of consolidation settlement since my debt is Dh160,000. My monthly salary is Dh8,000 and I pay Dh7,200 to the banks every month. This all started when I took a loan to buy land in 2012 and used credit cards for local purchases and airfares and for my personal problems at home. My liabilities are:
Debt / Amount owed/ Monthly repayment
Loan 1: Dh102,180 / Dh3372.6 (Used to clear my credit cards but could not clear all)
Credit card 1: Dh20,300 /Dh 1800 (Used to settle debts with friends)
Credit card 2: Dh31,500 / Dh 1,600 (Lost this money due to online trading)
Credit card 3: Dh14,000 / Dh500 (Used this card for friends that ran away)
Total owed: Dh167,980
My monthly expenses are:
Debt repayments: Dh7,272
Rent: 800
Food: Dh350
Transport: Dh400
Total: Dh8,722
My friends support me with my food and transport costs. I work in logistics in Dubai and only have my sister dependent on my income. I am trying debt consolidation companies to see if they can help, but can you suggest another way? CK, Dubai
Debt panellist 1: Philip King, the head of retail banking at Abu Dhabi Islamic Bank
With a debt burden ratio (DBR) of over 90 per cent, well above Central Bank of the UAE regulations that state the maximum DBR ratio for anyone in the country should not exceed 50 per cent, and total debt of more than 20 times your monthly salary, banks cannot lend any more to you given your current financial situation.
It depends which banks your cards are held with, as they will want to have a full picture of your debt obligations if they are to provide you with a consolidating loan. Rightly, the bank will want to be sure that such financing will be used to immediately pay off and close your cards rather than increasing your debt load further. Given this, you should aim to have a conversation with your bank having clearly considered and set out your repayment intentions so that they are realistic and sustainable.
I have to wonder why you were engaging in online trading using a credit card. Typically, this can be a hugely risky venture and, given market volatility, can result in significant losses in a very short time frame. In addition, lending to friends, even if you trust them, should also be avoided. Not only can this put a strain on any personal relationship, there is a danger that they may abscond, as in your case, leaving you with very little options for recourse.
Instead, you should encourage them to borrow from a regulated lender, preferably a bank. Going forward, you cannot consider engaging in either such behaviours and you must understand that only dedicated and prudent financial management will clear your debt.
Your monthly expenses are already low, and I imagine it will be difficult to reduce these further, especially if you are already being subsidised by friends. If you still own the land that your acquired in 2012, a priority should be to sell this, as well as any other assets of value which will enable you to eat into your total debt. Then you must speak to the bank with which you have all, or the majority, of your borrowing to explain your situation and agree a viable repayment programme. It will take time to clear your total debt – over 40 months if you can settle on monthly repayments of Dh4,000 – but with time and patience you can become debt free.
______
Read more:
The Debt Panel: Dubai finance manager earning Dh22,000 is struggling to cope with Dh450,000 debts
It is possible to restructure debt directly with UAE banks, a Sharjah resident reveals how
The Debt Panel: 'I owe Dh82,000 to loan sharks for an apartment I sublet to earn Dh6,000 a month'
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Debt panellist 2: Rasheda Khatun Khan, a wealth and wellness planner
Stacking up debt on credit cards, consolidating it onto a loan and then stacking up more credit card debt is an extremely vicious cycle. It is caused by a lack of understanding of how financial products work as well as shortsighted spending habits. Yes, it is easily done and, yes, it can also lead to a painful financial mess as in your case.
Credit cards are so often misused. It's actually the most expensive form of borrowing money but because of its convenient access, many fall into the misuse trap, which then leads into a poor habitual way of spending money. This is when it becomes a very dangerous game and the only outcome is severe debt. More care needs to be taken with credit cards, both from the bank's perspective when it issues the cards, and from the spender's perspective, who is using the card.
The first approach for consolidating should be to the banks that issued the credit cards. As they already have the debt, request to transfer the debt onto a payment plan loan or structure. Explain your situation and make a plea with a suggested affordable monthly repayment amount.
Make an appointment with each bank you have credit card debt with and try to see someone from the lending department. Remember what's important here is that you know your own numbers. Know exactly how much you can pay on each credit card, so you are still left with sufficient money to live on. This should mean that you do not need to use any credit cards to cover any expenses.
Consolidating your debt now will only resolve the surface problem. To solve the issue long term, your must address the source, which is your expenses. The most important question is, what do you need to do to be able to stop using the credit cards all together? If every month you are still relying on cards to pay for living expenses then the problem will not end. So when "debt consolidating", it's crucial that the two ends are addressed - consolidating and living within what's left.
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Read more:
A nine-step guide to help you renegotiate bank debts in the UAE
The Debt Panel: 'I bailed out my mum when my dad died and now owe over Dh240,000'
The Debt Panel: 'I borrowed Dh50,000 on credit cards to pay family medical expenses and friends' shopping bills'
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Debt panellist 3: Michael Routledge, a debt adviser
Based on your current level of debt, and your salary, you have an extremely high DBR hovering around the 100 per cent mark. There is no way you can pay the debts as they currently stand and will need to negotiate repayment plans with your lenders.
I suggest you prepare a statement of accounts clearly outlining your income, cost of living, and current debts as you have in your email above, offering a little more detail if possible. You should also contact the Al Etihad Credit Bureau and request your credit report. This can be used as additional evidence of your debt when speaking to your lenders. Realistically, your lenders cannot expect you to service all of your debts based on your salary of Dh8,000 per month.
In addition to the above, contact the central bank for guidance with regard to the credit you have been offered. Lenders in the UAE should not offer credit if it exceeds the 50 per cent DBR as outlined by the central bank; you may find it will support your attempts to restructure your debts.
As I often make clear in my responses to requests for debt support, please be ready for a lot of hard work and persistence on your journey to becoming debt free. Your lenders are in the business of making money, and will by no means make the negotiation process easy for you. You must use every ounce of effort you have to make this work, but once you do it will all be worth it.
On this panel this week: Philip King, the head of retail banking at Abu Dhabi Islamic Bank; Rasheda Khatun Khan, a wealth and wellness planner and founder of Design Your Life and Michael Routledge, a UAE-based debt adviser
The Debt Panel is a weekly online column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae.
Motori Profile
Date started: March 2020
Co-founder/CEO: Ahmed Eissa
Based: UAE, Abu Dhabi
Sector: Insurance Sector
Size: 50 full-time employees (Inside and Outside UAE)
Stage: Seed stage and seeking Series A round of financing
Investors: Safe City Group
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
MATCH INFO
Europa League final
Marseille 0
Atletico Madrid 3
Greizmann (21', 49'), Gabi (89')
UAE’s revised Cricket World Cup League Two schedule
August, 2021: Host - United States; Teams - UAE, United States and Scotland
Between September and November, 2021 (dates TBC): Host - Namibia; Teams - Namibia, Oman, UAE
December, 2021: Host - UAE; Teams - UAE, Namibia, Oman
February, 2022: Hosts - Nepal; Teams - UAE, Nepal, PNG
June, 2022: Hosts - Scotland; Teams - UAE, United States, Scotland
September, 2022: Hosts - PNG; Teams - UAE, PNG, Nepal
February, 2023: Hosts - UAE; Teams - UAE, PNG, Nepal
The%20Emperor%20and%20the%20Elephant
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Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
COMPANY%20PROFILE
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MATCH STATS
Wolves 0
Aston Villa 1 (El Ghazi 90 4' pen)
Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)
Man of the match: Emi Martinez (Aston Villa)
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
UAE currency: the story behind the money in your pockets
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Final
Abu Dhabi Harlequins v Jebel Ali Dragons, Friday, March 29, 5pm at The Sevens, Dubai
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
RESULTS
Catchweight 63.5kg: Shakriyor Juraev (UZB) beat Bahez Khoshnaw (IRQ). Round 3 TKO (body kick)
Lightweight: Nart Abida (JOR) beat Moussa Salih (MAR). Round 1 by rear naked choke
Catchweight 79kg: Laid Zerhouni (ALG) beat Ahmed Saeb (IRQ). Round 1 TKO (punches)
Catchweight 58kg: Omar Al Hussaini (UAE) beat Mohamed Sahabdeen (SLA) Round 1 rear naked choke
Flyweight: Lina Fayyad (JOR) beat Sophia Haddouche (ALG) Round 2 TKO (ground and pound)
Catchweight 80kg: Badreddine Diani (MAR) beat Sofiane Aïssaoui (ALG) Round 2 TKO
Flyweight: Sabriye Sengul (TUR) beat Mona Ftouhi (TUN). Unanimous decision
Middleweight: Kher Khalifa Eshoushan (LIB) beat Essa Basem (JOR). Round 1 rear naked choke
Heavyweight: Mohamed Jumaa (SUD) beat Hassen Rahat (MAR). Round 1 TKO (ground and pound)
Lightweight: Abdullah Mohammad Ali Musalim (UAE beat Omar Emad (EGY). Round 1 triangle choke
Catchweight 62kg: Ali Taleb (IRQ) beat Mohamed El Mesbahi (MAR). Round 2 KO
Catchweight 88kg: Mohamad Osseili (LEB) beat Samir Zaidi (COM). Unanimous decision
If you go
The flights
Emirates flies from Dubai to Funchal via Lisbon, with a connecting flight with Air Portugal. Economy class returns cost from Dh3,845 return including taxes.
The trip
The WalkMe app can be downloaded from the usual sources. If you don’t fancy doing the trip yourself, then Explore offers an eight-day levada trails tour from Dh3,050, not including flights.
The hotel
There isn’t another hotel anywhere in Madeira that matches the history and luxury of the Belmond Reid's Palace in Funchal. Doubles from Dh1,400 per night including taxes.
Get Out
Director: Jordan Peele
Stars: Daniel Kaluuya, Allison Williams, Catherine Keener, Bradley Whitford
Four stars
The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EElggo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20August%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Luma%20Makari%20and%20Mirna%20Mneimneh%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Education%20technology%20%2F%20health%20technology%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%20Four%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-seed%3C%2Fp%3E%0A
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)
MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
