I lost my salaried job with a UAE bank a year ago and took up a commission-only job. My wife earns a monthly salary of Dh5,000, but it is not regular and there are often arrears of several months.
We have two school-age children. During some months, I am able to earn around Dh7,000 to Dh8,000 in commissions. But other months, my family and I have to survive on my four credit cards. I use one to settle the other cards' dues and also use them to manage our expenses, including house rent, school fees and other miscellaneous costs and bills.
Since I worked in a bank, I feel that I am disciplined in using my credit cards. However, it is getting increasingly difficult to manage our budget and family expenses this way and I am worried that our debt will become unmanageable, particularly with all the financial uncertainty caused by the Covid-19 pandemic. How can I improve our financial situation and make it more stable? BN, Sharjah
Debt panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
Your worries are valid – this is indeed an unprecedented time filled with many uncertainties. However, it is great to see that you are being responsible and trying to minimise the risk of defaulting on your debt, as well as exploring more sustainable and long-term solutions for your financial situation.
Cards are typically beneficial for short-term financing needs or emergencies, but it could be detrimental in the long term as it brings potential pitfalls such as overspending, high interest rates and unpaid balances that have a direct impact on credit scores. In your case, using your card to settle dues of another is not a sustainable solution and will ultimately lead you to a vicious cycle of borrowing.
Firstly, you should familiarise yourself with the separate sets of terms and conditions for each of your cards, such as their limits, balances, due dates and interest rates. If you skip a card payment, you are at risk of hefty late payment charges and penalties, which also end up inflating your debt.
Over-reliance on credit cards has become a serious problem for many residents like yourself in the midst of this pandemic
Therefore, you must inform your bank immediately when you are at risk of defaulting on a payment. You can also request if it is possible to have instalment deferrals to allow you to take a short-term break from repayments.
Living with debt and an unpredictable income can certainly be distressing. In order to establish a sound financial footing, it would be helpful for you to seek alternative avenues to improve your income. This may mean finding a job with a fixed monthly income that will offer you long-term stability and help lessen your reliance on credit cards.
It is also highly recommended that you decrease your expenditure as much as possible through stringent budgeting, selling assets to raise funds, or even contacting family from home for financial assistance during this difficult time. Interest-free borrowing from friends or relatives will allow you to reduce your debts and avoid a further snowballing effect.
Debt panellist 2: Ambareen Musa, founder and chief executive of Souqalmal.com
Over-reliance on credit cards has become a serious problem for many residents like yourself in the midst of this pandemic. Being cash-strapped because of pay cuts, unpaid leave and redundancies has left people struggling to find ways to manage their expenses, with many turning to credit cards for respite. But depending on credit cards to pay for everyday expenses is not a sustainable solution in the long term.
Since you have multiple credit cards, you could consider transferring the combined or majority of the outstanding balances to the card with the lowest interest rate or one that offers you a zero interest rate for the first few months.
Speak to all of your credit card providers to see if this is a workable solution for you. You could also try to negotiate a fixed-interest fixed-tenure repayment plan on your credit cards to at least get rid of the accumulating interest.
It is crucial to get out of the cycle of accumulating interest that comes with credit card debt, which tends to accumulate faster due to exorbitant interest rates averaging close to 40 per cent annually.
Explore options like getting an interest-free loan from family members who are willing to help. And if you have any previous savings that you can tap into or an asset that you can sell, you can use this additional money to pay off some of the highest-interest debt sooner.
To generate some extra income, could you and your wife look into finding another source of income, such as part-time or freelance work? The additional income can be used to pay off your credit card debts more quickly.
Your current financial situation also calls for making cutbacks wherever you can. Make a list of your monthly expenses and see where you can save.
Whatever you are able to save must go towards paying off your credit cards one by one. Pick a debt repayment strategy that works for you. You could try the "debt snowball" method and pay off the smallest credit card balance first. Alternatively, you could go with the "debt stacking" method and pay off the credit card debt with the highest interest rate first.
Debt panellist 3: Stuart Ritchie, director of wealth advice at AES
It’s great to hear you are looking at ways to improve your financial situation. This is an important first step in getting better control of your family’s finances.
There are a few options to help free yourself of your current credit card debt. First, you can try to pay off at least one of the cards in the next few months. Either you can look to pay off the one with the lowest limit, or the one with the highest fees.
Once one card is closed, take the money you would have used on the charges to pay into the remaining cards. Increasing the amount you pay back will allow you to pay your cards off sooner.
Your other option is to consider a consolidation loan to cover all your cards. You can then choose a loan repayment term that fits within your budget and will work out to be much more affordable than the individual credit card fees you’re paying each month. However, it’s important to note that should you choose this option, your cards may be closed and not available for future use.
Finally, a last resort may be to negotiate your rent with your landlord or find a more affordable place to live. By cutting down on your rent, and ultimately your utility bills, you’ll free up more cash to use to survive on or to pay off your credit cards. I hope this helps to set you on your way towards a better future.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
More from Rashmee Roshan Lall
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
PLAY-OFF%20DRAW
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Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
Bournemouth 0
Manchester United 2
Smalling (28'), Lukaku (70')
Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
FIGHT%20CARD
%3Cp%3E%3Cstrong%3EFeatherweight%204%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EYousuf%20Ali%20(2-0-0)%20(win-loss-draw)%20v%20Alex%20Semugenyi%20(0-1-0)%3Cbr%3E%3Cstrong%3EWelterweight%206%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBenyamin%20Moradzadeh%20(0-0-0)%20v%20Rohit%20Chaudhary%20(4-0-2)%3Cbr%3E%3Cstrong%3EHeavyweight%204%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EYoussef%20Karrar%20(1-0-0)%20v%20Muhammad%20Muzeei%20(0-0-0)%3Cbr%3E%3Cstrong%3EWelterweight%206%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EMarwan%20Mohamad%20Madboly%20(2-0-0)%20v%20Sheldon%20Schultz%20(4-4-0)%3Cbr%3E%3Cstrong%3ESuper%20featherweight%208%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBishara%20Sabbar%20(6-0-0)%20v%20Mohammed%20Azahar%20(8-5-1)%3Cbr%3E%3Cstrong%3ECruiseweight%208%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EMohammed%20Bekdash%20(25-0-0)%20v%20Musa%20N%E2%80%99tege%20(8-4-0)%3Cbr%3E%3Cstrong%3ESuper%20flyweight%2010%20rounds%3A%3C%2Fstrong%3E%3Cbr%3ESultan%20Al%20Nuaimi%20(9-0-0)%20v%20Jemsi%20Kibazange%20(18-6-2)%3Cbr%3E%3Cstrong%3ELightweight%2010%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBader%20Samreen%20(8-0-0)%20v%20Jose%20Paez%20Gonzales%20(16-2-2-)%3C%2Fp%3E%0A
RESULTS
Bantamweight
Victor Nunes (BRA) beat Siyovush Gulmamadov (TJK)
(Split decision)
Featherweight
Hussein Salim (IRQ) beat Shakhriyor Juraev (UZB)
(Round 1 submission, armbar)
Catchweight 80kg
Rashed Dawood (UAE) beat Otabek Kadirov (UZB)
(Round-1 submission, rear naked choke)
Lightweight
Ho Taek-oh (KOR) beat Ronald Girones (CUB)
(Round 3 submission, triangle choke)
Lightweight
Arthur Zaynukov (RUS) beat Damien Lapilus (FRA)
(Unanimous points)
Bantamweight
Vinicius de Oliveira (BRA) beat Furkatbek Yokubov (RUS)
(Round 1 TKO)
Featherweight
Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)
(Round 1 rear naked choke)
Flyweight
Shannon Ross (TUR) beat Donovon Freelow (USA)
(Unanimous decision)
Lightweight
Dan Collins (GBR) beat Mohammad Yahya (UAE)
(Round 2 submission D’arce choke)
Catchweight 73kg
Martun Mezhulmyan (ARM) beat Islam Mamedov (RUS)
(Round 3 submission, kneebar)
Bantamweight world title
Xavier Alaoui (MAR) beat Jaures Dea (CAM)
(Unanimous points 48-46, 49-45, 49-45)
Flyweight world title
Manon Fiorot (FRA) v Gabriela Campo (ARG)
(Round 1 RSC)
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Major honours
ARSENAL
BARCELONA
- La Liga - 2013
- Copa del Rey - 2012
- Fifa Club World Cup - 2011
CHELSEA
- Premier League - 2015, 2017
- FA Cup - 2018
- League Cup - 2015
SPAIN
- World Cup - 2010
- European Championship - 2008, 2012
