I struggled to secure payments from clients and had to issue cheques worth Dh400,000 to my suppliers and vendors. I also had about Dh50,000 worth of credit card debt in the UAE.
I flew to my home country on a repatriation flight last year. Subsequently, a few of my cheques issued to suppliers bounced. I want to return to the UAE but am afraid I might be detained at the airport by immigration authorities. What can I do to fix the situation?
GK, India
Debt panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
The Covid-19 pandemic has severely affected many businesses and people in the UAE and globally, leaving them in difficult situations and with unexpected financial repercussions.
The bank’s collection department has been calling him continuously and asking for a single-payment settlement of Dh15,000 or to pay Dh2,000 per month.
Before the collection department started calling my brother, he also received an email from the bank that offered to convert the overdue amount into a 48-month loan. He replied to that email and I have also tried contacting the bank on his behalf to accept the offer, but we have been unable to reach anybody.
Is there any option to convert the amount into equated monthly instalments so I can at least help him settle the debt? Or would it be better to request a payment holiday under the Targeted Economic Support Scheme (Tess) to give us some breathing space and more time sort out this issue?
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It’s all very well to keep your personal finances to yourself when you are single. But what happens if you continue this habit when you are married?
Financial infidelity can have a devastating effect on a marriage and create huge trust issues between couples if one of them is not honest about money.
From hiding purchases to having a secret bank and credit card account or taking out a loan without their spouse knowing about it are just a few examples of financial infidelity.
In 2020, a survey by creditcard.com found that financial infidelity in marriages is on the rise, with 44 per cent of US respondents admitting they kept money secrets from their spouses.
The principal amount of my loan is Dh99,600 but with interest, the outstanding balance is Dh103,226 and there is another three years left on the loan.
I am worried about losing my job and defaulting on the loan. If that happens, what will be the consequences? Is there anything that the bank can do to help me lower the monthly payments on the loan? I don’t want to borrow money from people just to survive each month.
RA, Dubai
Debt panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
Your situation may seem overwhelming, but it is essential to remain optimistic and make all possible efforts to improve your financial circumstances.