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29 March 2024

Personal finance: How to avoid 'fear factor' when handling debt crisis in UAE

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Theda Muller

So now you have taken responsibility for this debt-crisis you are facing, you are ready to face the creditors, but you are being hounded to settle default payments by up to 50 calls per day, so you are torn between not being able to pay the amount and your willingness to pay, so what do you do?

At all costs, avoid the fear factor as you need your head clear to meet your first challenge and by all means try to take the calls, don’t avoid them and just explain that you are busy with meeting senior collection executives to present your problem and for a solution approval. Remember, there is always a way, we are all human and so you are not going to meet an alien to help you and understand exactly your current position.

But the very key is, be sincere, be clean hearted with all good intentions to repay this debt.

This is not an opportunity to clear the path for you to run, not at all, because running means you will continue to have the same problem wherever you go, because you are the problem and unless you change, nothing will change for you.

Your first step is to source a manager’s direct telephone number, call and request consideration for a meeting and briefly explain your reason.

Do this for all of your liabilities so you can ensure that at the end of the day, you are able to meet each and every monthly payment, avoid interest and other penalties.

Your ultimate aim is to have peace of mind to go about your daily business and progress and visibly see your debt reducing, not just servicing interest and penalties.

Even if your liability is bordering on legal action, you must still make a concerted effort to meet with a decision-maker to openly discuss your problem, because whatever anyone says, they are always willing to listen and to help, when they see and feel your sincerity.

Do not allow anyone to come into your space of willingness and convince you, that it won’t work. It is absolutely your job to ensure that it does work, in the face of all forms of adversity. Only you can set the record straight and turn your life around. We all get chances, some of us more than one, and right here you need to take responsibility and action.

Compile a debt schedule with all key details, i.e. principle, current outstanding balance, monthly payment, overdue payment, etc…and then insert a workable monthly payment that you will be able to afford and is realistic and possible for the creditor to approve. Tally all those and see if the final total is affordable for you. Once you are comfortable with that, then you meet your creditors and present the amount you can afford monthly.

Do this for each creditor and once it is all approved, adhere to that schedule.

Where it is not approved, ask to speak with a very senior manager and go through the same motions, mentioning your attempts to date and show your sincerity for what you are asking, people need to feel you, but again, be sincere because this is not a game or a joke and you are not here to take people for granted, or be afforded undeserving special favours when your intentions are bad.

Do not forget to request the approving manager to inform the staff about this new possible arrangement and that they should halt all calls until a decision is made. This is very important as processes can advance to a legal phase unbeknown to the staff auctioning the process, because it is not updated in the system so perhaps not intentionally auctioned.

It is your job to cover the entire basis to protect yourself as nobody else is going to do it for you. Don’t be flimsy with documentation or appointment dates and times, start being rigorous about your daily program, be prompt, prepared and look like you what you are doing on this new path and avoid projecting yourself as this sad, depleted figure who is seeking charity or looking for help or even has a very dark cloud hanging over their head. Your job is to feel good, be positive about the steps you are taking and only just looking ahead the upcoming result so you need to focus all the time.

People may say you just overrode the line of authority and the realism is that you did no such thing; the only action you took was to save yourself the best way possible by approaching and speaking to people who are in a position to make a key decision that affects your life. So at any given stage you are approached for overstepping the line, be courteous in explaining and your reasons and remember, you do not have to justify your actions to anyone at this point, only with the people whom you are dealing with to resolve your problems.

Lately I found clients informing me that they are threatened with being exposed at work. Even if this happens to you, take immediate action to go and meet with the decision-maker. If your employer comes to know, request a meeting with your Human Resources manager and explain that you are in the process of resolving this serious matter and assure them that since it has not affected your performance at work, it will not hamper the same in the future as you need your job right now.

People understand, as much as we fear the direct approach, it is the only one that works. Avoiding these issues means snowballing and finally uncontrollable and you have absolutely no reason to be scared, to avoid anyone because at the end, you are telling the truth and they should be able to determine this from what you project.

Displaying overbearing emotions in the creditor environment is not going to serve you because you need to project an image of strength, humility and co-operation that you will keep your word if your request is considered.

One very key suggestion is if you are expected to pay Dh1,000 and you only have Dh200, go and pay it, confirm your payment, email it to your creditor because it shows integrity and credibility no matter how small you perceive it to be.

Next time around you have another Dh100, go and pay this too because the little bits all add up and it contributes to your character.

Never assume nobody is watching, there is always that one person that will show a huge degree of empathy and if you can contribute to displaying your commitment, then don’t waiver to do it because it will serve you well.

When you break all these steps down then the final outcome is, pure logic and pure displays of humanity and nobody can take that away from you, no matter how bad the situation.

You need to also stop beating yourself with old stories and not give yourself credibility where it’s due.

A little pat on the back for yourself, a small cappuccino treat, your favorite muffin and just time spent alone in a coffee break, will make you feel better.

Learn to reach out for the things that transform your emotions and moods and try your level best to always seek out the good feelings because when you do, the good will come to you and you may be surprised.
 

[Note 1:  Theda Muller is a UAE-based author of two books: ‘Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy’, and Volume Two: ‘Releasing Fear And Bouncing Back From A Debt Crisis’.]

[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]

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