Dh350,000 debt case – don't dig a new hole

In my experience the key factors for getting out of debt is firstly being honest with yourself, accepting your situation as it is, taking the experienced advice readily available to you with humility. Remove any notion that you may have to go around the back door to apply for additional credit because then you are just fooling yourself and your debt recovery transforms to a fallacy. Current debtor debt background - Dh350,000.00+ in debt in personal loans and credit cards. - 80% of accounts are in arrears by 1-2 years. - The debtor has no idea of all the account status. - The debtor has not taken any creditor calls for more than 6 months. - The debtor assumes their accounts are already legal but has no clue. - The debtor has an emotional breakdown at their place of work with a stranger. - The debtor has faced legal problems more about one year ago. - After facing legal problems one year ago and being rescued by a family member who took a loan to assist, the debtor then applies for another personal loan and according to the individual, then repaid some of the liabilities, not all. - The debtor is then referred to me by a client whom I briefly helped after reading my published debt articles. This should mean something, right? But it was not to be and you will see below in my response. - I contact the debtor, request the complete debt report and upon receiving it, I compile a first plan of action, send it to the debtor to complete and return to me. My expectations are that I would receive it within a short while since the situation is critical. - After 2 weeks I receive a telephone call from the debtor informing me that they attempted to remove their blacklisting from Central Bank, but was unsuccessful and a light went on in my head immediately as this was not mentioned in the original debt call. I then realised the reason for this action and why they did not review my advice and plan upon receipt. - I then inquired why it was more important to clear this blacklisting than action the plan I had emailed… long silence, then the truth “I was approved by ‘x’ bank for a loan but now it is declined due to this blacklisting and I tried to request them to remove it”. - My response was that I am not here to support additional loan applications or blacklisting removals or rescinding any negative rating, because that is not my purpose and I closed the line. My Response - When you do not take the time to respect any person’s advice to whom you are reaching for help, then you do not deserve a second or any chance of assistance to aid you to resolve your debt problems. - It is obvious that the debt recovery goal was not on the individual’s agenda, rather making a new hole to cover up an old one. - In life when you face monetary problems, then the cash you desire is never readily available to you because life is about to teach you a lesson, whether you receive it or not, it will dictate you end up having no choices but face reality. - When you have faced legal debt problems in the past then that experience in itself, should have been your first and hardest lesson and not the willingness to look past that experience and walk to the next financial institution to afford yourself of more credit, which you cannot afford. - Very clearly you cannot meet your current liabilities, so what gives you the idea you can handle a bigger load? - Sometimes it is possible to secure another loan but then it must serve the carefully planned purpose, i.e. - You have already approached all of your creditors, secured a final settlement in writing, which should be your new loan value. - Means you then settle your individual debt at the negotiated reduced value, so you save money that you do not have to repay and then you are left with one loan that you repay in affordable payments – THEREAFTER, NO MORE LOANS UNTIL ALL YOUR DEBT IS REPAID. - In Debt, you are always in an emotional state of fear and confusion, so you inevitably end up grabbing at many straws, with no real direction or outcome and so desperation sets in and when you are in this state, your thinking is irrational so the decisions you make is the same. - If you remain in this emotional state you will simply call in exactly more of the same, more debt, and more uncontrollable situations and finally, you face a real big problem that is out of your control and reach and then the lesson begins. - Not taking creditors calls or ignoring legal notices is where I have no sympathy because that is where I draw the line because simply, you refuse to take responsibility. - Taking ownership in the beginning stages of this situation is key and you are the only person who can do that, not anyone else. Never expect someone else to clean up your mess and put themselves, their reputation and sound relationships on the line for you, especially a stranger w