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Ex-Pat Debt in the UAE

Discussion forum for expats moving to or living in the United Arab Emirates (UAE).
Subforums: Property for Sale/Rent

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Ex-Pat Debt in the UAE

Post Posted: Wed Mar 11, 2009 7:41 am

In a time of change, This topic of debt held by expats in the UAE is the one I have found most worrying and concerning.

Rent advance loans I could understand (how else did you get started in the UAE accomodation if you didn't have money to deposit to cover the first 6 month cheque? the benefit there was you would get a significant proportion of that advance rent back again to pay back the loan if you lost your job. Car purchase the same. Presuming you dropped an amount equal to or more than the initial depreciation of the car as a deposit, your repayments would liklely keep the debt at, or below the resale value - so in both cases the asset would equal the majority of any outstanding finance, should circumstances change.

Personal debt though...credit card debt accrued for cost of living expenses, holidays, houshold purchases, UAE funded finance for home country expenditure or home improvements though? All of a sudden we are seeing a large chunk of people with unservicable UAE debt.

Unfortunately, it's my experience that the banks have not changed their approach, depsite the lending restrictions reported in the press. Mobiles in my office are ringing every day with pre approved unsecured loan and card offers. Some peple are choosing to "do a runner" closing the door of ever entering or working in this country again. Some people are taking low paid jobs in an attempt to clear their debts (over years)

My opinion is borrow only if you need to fund a rent check or need work essential transport, that assets or pre paid credit can be cashed in again if circumstances change.

 

youngandfoolish
Forum Leader - UAE
Forum Leader - UAE
 
 
  

Re: Ex-Pat Debt in the UAE

Post Posted: Mon Apr 27, 2009 7:18 am

I have debts of credit card. I lost my job and if i can't repay, its mean i can't go out from the country?.

 

ayumaz
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Re: Ex-Pat Debt in the UAE

Post Posted: Mon Sep 21, 2009 12:35 pm

I think that the only way you can leave is by "doing a runner". This article (http://www.thenational.ae/apps/pbcs.dll/article?AID=/20090704/PERSONALFINANCE/707039962/1337/PERSONALFINANCECOLUMNISTS) says that debtors who can’t pay often wind up in prison. According to one estimate from earlier this year, there were around 450 people jailed in Dubai because of bad debts.

 

UKvisitor
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Re: Ex-Pat Debt in the UAE

Post Posted: Sun Oct 18, 2009 6:29 am

On the plus side, there is less need to get into debt (in Dubai anyway) as landlords are having to accept larger numbers of cheques to make up the annual rent - so the need to take a loan of hunreds of k to cover a rent cheque is less prominant.

New arrivals - ask carefully if you really need the burden of a 150k loan for that new Prado or buying a whole appartment of furniture brand new from Ikea. Live modestly and sleep better!!

 

youngandfoolish
Forum Leader - UAE
Forum Leader - UAE
 
 
  

Re: Ex-Pat Debt in the UAE

Post Posted: Fri Dec 24, 2010 1:58 pm

- ayumaz

I have debts of credit card. I lost my job and if i can't repay, its mean i can't go out from the country?.





I am wondering how many months of non payment of card before they file a case against you. Like in my case,I missed my last month pay and received text messages from the agent.


_________________

Maybe interested in Dubai Property |

 

saramartin
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