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29 March 2024

Expats who run away from debt in UAE… Click here to know how to stay put

Published

Case Study 1: The Salaried Individual
 

*Your State of Mind


What would be your most logical form of action to resolve your debt crisis?

Hypothesis - You are in such bad debt that you don’t know which way to turn, you are emotionally drained thus affecting your personal and business life. You are miserable, without hope and you really don’t know where to start. As far as you are concerned there is no immediate solution, but to follow your instincts and do what you feel is right for you and your family. You may take the wrong decision, i.e. to pack up and go! Or tackle it alone.

You don’t feel like speaking to anyone else about this because you feel nobody understands and then you want to avoid the embarrassment and humiliation, too.

You feel that if you initially handle it alone nobody will ever know that you are in a bad situation. Also you may get away being pretentious. It may also make you feel good that you are recovering.

Being in the UAE, I would assume your most logical answer would be one of two forms of action, being: Send your family back home and return to a bachelor’s apartment, start repaying your debts, without consulting your creditors. You believe that as long as you pay them some small amount, no relevant action will be taken against you.

Fact is that you should pay all of the expected monthly payments and if you don’t, you are facing accumulation of interest and penalty charges. This is the reality!

Your immediate train of thought is that if your family is directly unaffected, then it doesn’t matter what happens to you. This decision can be taken irrespective of you and/or your spouse being employed.

Remove the entire family including yourself, sell whatever can still be salvaged and leave the country, because you definitely do not see a solution to resolve your problems in the near future.

* My Response


How would your family survive without you? Without their breadwinner, husband and father who is their emotional support, too.

Why could you not have downscaled on your accommodation, salvaged your furniture, secure a bit of funds and close the most urgent ‘holes’ immediately so there is some form of relief.

Why could you not enroll your children into less costly schools in the interim until you recovered and were in a more comfortable situation to afford better schools. If one spouse is not working, why not try to secure employment as a temporary measure?

Don’t you think changing your lifestyle from a family man (if you are a male) to a bachelor would take its emotional toll on your health, well-being and social activities? Separation may also impact negatively on your marriage.

If you leave the place and return home, how soon would you secure employment there? What would be the currency variances to perhaps become accustomed to a lower standard of living?

How about your conscience? That you left behind a debt? Is it not possible that you can be traced by agents who will haunt you to repay them? Just how long would it take you to repay the debt from your own country?

The crucial actions to be taken as a start to recovery are:

Face reality and carefully evaluate the real consequences of your actions. Immediately take responsibility for your actions.

Meet with your creditors to establish all possibilitiesand solutions. Do not avoid your creditors. Always respond to their calls.

Know the exact value of the debt you have acquired – Record it!

Investigate into cheaper options for accommodation, schools, transportation, alternative employment options for higher salaries, etc.

If you opt for your family to leave, know their state of mind, how they feel about living without you, what kind of support infrastructure will be available for them in your absence, will both parties be happy, contented and satisfied with this arrangement?

See a sure way out before making any rash decisions.

Be a tough person, fight your way out of any situation and you will be a winner.

Don’t just give UP!
 

[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.
She also conducts webinars and workshops on debt recovery.]

[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.]