Expat family lands up in vicious debt trap

It’s easy to get carried away and get locked into Dubai’s flamboyant lifestyle, but if you aren’t wary the bubble will burst, leaving you borrowing into a vicious debt trap.

Indian expat KM (name changed) is a classic example of a dream gone horribly wrong.

She moved to Dubai, six years ago, from Goa, with husband, three children and her mother-in-law, with huge aspirations. And, initially, their dream was unharmed. Her husband earned enough and even bought a property in Goa, after borrowing from a local bank and an Indian bank.

But once the recession hit, it destroyed their lives.

Her husband’s company shut down, leaving him unemployed and forcing him to max out his credit cards to make ends meet. “In his desperation, my husband started using his credit cards to pay for the rent, groceries and school fee, and ended up incurring more debts,” recalled KM.

And when they were unable to pay the school fees, they were forced to send their eldest child to live with his grandparents in India.

During this time, the local bank filed a case against the husband over non-payment of the monthly installments, which had stopped after he lost his job. “We got through the criminal case, and even acquired a clearance letter from the court, but the bank filed a civil case,” she elaborated.

Her husband did find employment elsewhere and was even issued a company visa, but when they learnt about the civil case they asked him to resign. “They’ve kept his passport since and said they’d release it only after he submits a clearance letter from the court.”

The situation further deteriorated as his visa, which was not stamped on the passport, has since expired and he’s currently on an overstay. “He can’t even find another job because of this civil case, and he can’t even move out because of the travel ban.”

But all’s not lost. KM has since found a job and managed to get a company visa even. She has even negotiated with the bank and settled for Dh147,000 against the original borrowing of Dh193,000, of which she has repaid Dh100,000 by selling her gold and the property in Goa. “I’ve also cleared the outstanding with the Goan bank.”

However, KM is still short of Dh47,500 from unhooking her husband from the legal mess.

“The bank has given me time till April 10, but with a monthly income of Dh5,000 and absolutely no savings, I’m finding it tough to collect this money.”

Her two kids are also on an over-stay as her income doesn’t permit her to sponsor them. “Even my mother-in-law needs a sponsor and I’ve asked my brother-in-law, who also lives in Dubai, to step in.”

KM informed that the Indian Consulate has helped her in paying 50% of her children’s outstanding school fees, while her close friends cleared the remaining half.

She is worried if she’d be able to free her family of this legal mess. “I’ve noticed that my husband is getting depressed, but I hope our situation changes soon.”

Philanthropists can approach her through hotline@emirates247.com for assistance.

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