3 Steps to stay out of debt in United Arab Emirates. Credit card debt UAE.

Credit card debt in UAE

Debt is not a bad thing. But you need to plan properly to settle credit card debt in UAE. So that you don’t fall into a debt trap.

The last thing you want to do in times of such difficulties is to pay more than what you intended for any product or service and a financial product is no different

We do not end up paying more for smaller or less expensive things like groceries and appliances because the concept of, late payment charges, interest, due dates, cycle dates, minimum due amount, EMI charges, or other hidden charges are not involved.

When we talk about a facility these make all the difference. Every card, and loan, is designed keeping in mind 2 things.

1. Make it look as lucrative and as attractive to you as possible. Almost makes you believe that you absolutely need it and it’s the key to all your happiness.

2. Maximize their profits.

Mentioned below are the top 3 things you need to take care of when availing credit cards or personal loans in the UAE.

1. Educate yourself  About Credit Card Debt in UAE.

Every product or facility offered by different banks and financial institutions will have its own set of rules and conditions. It is your responsibility to know these details, and read the fine print. There is no urgency to sign the agreement or application form. Take your time to read it understand, and if you more or less agree to it then only sign it. Because it’s not possible to make them change the clauses mentioned therein. But it is important that you know the rules to use them without being excessively charged on the facilities you avail.

For example, if you need to take a deferral, then take the deferral but make sure you understand what you are getting into. Keep in mind your cycle dates and know what you are being charged. And also understand what are the penalties or charges in case you miss a payment, plan your usage accordingly.

2. Plan, Plan, Plan, Plan as best as you can.

In these times of pandemic and mass layoffs, don’t take anything for granted, your job your salary, your investments, the only thing that you can be sure of is what you have in hand and your savings, any return on investment that you were looking forward to is not guaranteed at this point.

So if your plan was to close your credit cards outstanding when you get paid from the above-mentioned investments and its not going to happen anytime soon then cancel that plan, liquidate those investments and pay off the credit cards first, unless your investments are bringing you more than 41% in returns annually. Do not use your credit card as if it is money in your pocket. In most of the GCC you are paying as high as 41% on some cards. Of course, it is only 3.45 percent but this is on a monthly basis.

3. Take action to Settle Credit Card Debt in UAE.

Now that you know how much more you will be paying for that personal loan or credit card that you availed in the United Arab Emirates take action, if you have enough funds to clear the liabilities then take action and do it. Don’t procrastinate simply because you will be paying a lot more than what you had intended to.