# I need help in loan/credit card consolidation options available with banks in UAE.



## Sasi Kumar Chandra (Dec 7, 2014)

Im Sasi Kumar, from India, working in a vendor role in dubai. I have been employed in dubai since Jan 2014. Recently, i changed my job in month of september 2015. I am earning a monthly 8k aed (as per labour contract it is 12k since i had a ban of 6 months to be lifted, my employer is crediting 12k and taking back 4k). Iam in a financial crisis with back to back hits, fathers medical condition, home loan approved reduced (anticipated more), gave money to a friend abt 30k aed and he is not paying back (im paying all those interests late charges and other stuff). Its becoming very difficult to even survive in this situation. 

Im 28yrs old and im not willing to run away from my problems rather i want to face it and clear it out and come back stronger. I could see a better future in uae in regards to employment.

I need suggestions, tips and any contacts that can help me out in consolidating all my credit cards and convert into one single payment. Some info, my company is not listed in any banks yet (ADCB listing is under progress), i have two months of salary credit in ADCB (first month i got salary in hand since visa under process). 

Any help is very much appreciated!!!


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## The Rascal (Aug 6, 2014)

I'd be going to the labour office about your employer paying you 12 then taking back 4 every month!


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## Sasi Kumar Chandra (Dec 7, 2014)

Its a internal adjustment between me and employer they offered me 8k and i accepted it. Both of us were not aware of the labor ban clause and ban on me was unable to life. My employer is actually doing me this favor to get me a employment visa. Hope you understood.


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## mariot (Nov 4, 2013)

Sasi Kumar Chandra said:


> Its a internal adjustment between me and employer they offered me 8k and i accepted it. Both of us were not aware of the labor ban clause and ban on me was unable to life. My employer is actually doing me this favor to get me a employment visa. Hope you understood.


He's not doing you a favour I was in the same boat, he won't pay to change your contract later and even once company approved you won't be able to qualify for credit due to the discrepancy.

Also lifting a ban is a lot cheaper than adjusting a labour contract after 6months


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## Sasi Kumar Chandra (Dec 7, 2014)

mariot said:


> He's not doing you a favour I was in the same boat, he won't pay to change your contract later and even once company approved you won't be able to qualify for credit due to the discrepancy.
> 
> Also lifting a ban is a lot cheaper than adjusting a labour contract after 6months


Mariot, i signed the labor contract when applying for residence permit and i verified the salary part it is mentioned as 12k. After resident permit i was able to get a copy of the contract and it shows 12k as well. 

Thank you for your replies, but my problem is with debts. Im looking for help in loan consolidation to get my finances under control.


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## The Rascal (Aug 6, 2014)

If your company isn't on the list, you won't get a consolidation loan, hang fire, wait until it is with ADCB and try again.


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## mariot (Nov 4, 2013)

That's why I said I was in same boat, dunia and other creditors will have issue with payslip, salary certificate and wps not matching up even once company approved


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## Sasi Kumar Chandra (Dec 7, 2014)

The Rascal said:


> If your company isn't on the list, you won't get a consolidation loan, hang fire, wait until it is with ADCB and try again.


Yes, im getting hanging around hoping for the listing to be done. But i heard dubai islamic, emirates nbd gives loans widout salary transfer and non listed companies also. Their interest rate might be higher but it gives me room to breathe atleast.


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## Sasi Kumar Chandra (Dec 7, 2014)

mariot said:


> That's why I said I was in same boat, dunia and other creditors will have issue with payslip, salary certificate and wps not matching up even once company approved


Payslip, salary cert and contract all shows 12k.


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## The Rascal (Aug 6, 2014)

Sasi Kumar Chandra said:


> Yes, im getting hanging around hoping for the listing to be done. But i heard dubai islamic, emirates nbd gives loans widout salary transfer and non listed companies also. Their interest rate might be higher but it gives me room to breathe atleast.


So why don't you try them then?


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## Sasi Kumar Chandra (Dec 7, 2014)

The Rascal said:


> So why don't you try them then?


I want to try them, im looking for contacts working in those banks like friends or mutual friends so that they can help me out wid processeing and approvals (they know better abt worksrounds)


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## Stevesolar (Dec 21, 2012)

Sasi Kumar Chandra said:


> I want to try them, im looking for contacts working in those banks like friends or mutual friends so that they can help me out wid processeing and approvals (they know better abt worksrounds)


Why is everyone looking for "workarounds"?
Earn money - get a loan - pay loan - simples!
No workarounds required!


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## Sasi Kumar Chandra (Dec 7, 2014)

Stevesolar said:


> Why is everyone looking for "workarounds"?
> Earn money - get a loan - pay loan - simples!
> No workarounds required!


Thanks for your advice. Life is not that simple buddy, there are hard times in life really hard. Why do u think there are so many suicide cases breakdowns bankrupts because of huge debts. No offence absolutely.


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## Stevesolar (Dec 21, 2012)

Sasi Kumar Chandra said:


> Thanks for your advice. Life is not that simple buddy, there are hard times in life really hard. Why do u think there are so many suicide cases breakdowns bankrupts because of huge debts. No offence absolutely.


Well - using a workaround to get a bigger loan than you are entitled to is hardly going to make your life any easier!
It will simply get you further into debt and stretch your finances further.
Companies in the GCC are notorious for not paying employees on time, sacking people on a whim and generally messing people about.
For that reason - you need to be very cautious in committing yourself to high levels of debt in a country where personal debt is a criminal offence.
By the way - I am not attacking you - simply trying to help you think to not make more mistakes!
Best of luck
Steve


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## Sasi Kumar Chandra (Dec 7, 2014)

Stevesolar said:


> Well - using a workaround to get a bigger loan than you are entitled to is hardly going to make your life any easier!
> It will simply get you further into debt and stretch your finances further.
> Companies in the GCC are notorious for not paying employees on time, sacking people on a whim and generally messing people about.
> For that reason - you need to be very cautious in committing yourself to high levels of debt in a country where personal debt is a criminal offence.
> ...


Thank you steve, i agree with you, im trying to consolidate all loans into one loan and not trying to get more. Thanks again and sorry if i sounded rude.


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## The Rascal (Aug 6, 2014)

You want some advice? If you're drowning in debt now DON'T take out more loans, speak to your current creditors and negotiate with them a reduced payment each month until you get the increase in your salary (IF that ever happens), let's say 3 months? That will give you breathing space and once (IF) you get the extra 4,000 you will be able to afford the full repayments again.

The worst thing you can ever do is take out more debt.

Failing that leave and pay the debt off from your home country.


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## Dave-o (Aug 23, 2015)

Sasi Kumar Chandra said:


> ... im trying to consolidate all loans into one loan and not trying to get more...


That is exactly how loan 'consolidation' works. By taking out another loan to cover other loans, which will in turn add to your debt. 

Everyone here is telling you the same thing but you seem insistent on getting into more debt. Loan consolidation is an illusion sold to you by financial companies to make themselves money, not to help you out. Address the root cause of your problems rather than cover it up with another loan and more debt.


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## Sasi Kumar Chandra (Dec 7, 2014)

I guess i was shown a different picture about loan consolidation. It looked good coz i thought ill be in a better position with this option. I think i got the right approach now, thanks to all of you for your inputs. I will workout with a feasible payment plan on existing loans and clear it out in piece by piece. Thanks again and wish me luck.


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## QOFE (Apr 28, 2013)

Sasi Kumar Chandra said:


> Igave money to a friend abt 30k aed and he is not paying back (im paying all those interests late charges and other stuff).


How about pushing for getting the "friend" to pay back what he owes you? 30K plus interest plus late charges is a lot of money, especially as you only earn 8k a month now. Some friend that...

How big is your debt in total?


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## rsinner (Feb 3, 2009)

QOFE said:


> How big is your debt in total?


This. 

Having debt on various credit cards is more expensive than having a cheaper personal loan.
Check out souqalmal.com for various personal loan options. Keep in mind that it is RISKY always as the loan will be backed by a security cheque (as probably your current CC debt is).
I think the usual norm is that the loan EMIs should not be more than 30-40% of gross salary. For a 4 year loan this could translate to 100-130K of loan. Do not take even a penny more in loans than to just repay your current credit card debt.
On the cost side, I am hoping that your are already being frugal but try to cut down even further on costs as much as you can.
Do not send any money back home till your loan is settled. Do not make any new investments and absolutely do not loan money to ""friends".

All the best


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## Sasi Kumar Chandra (Dec 7, 2014)

rsinner said:


> This.
> 
> Having debt on various credit cards is more expensive than having a cheaper personal loan.
> Check out souqalmal.com for various personal loan options. Keep in mind that it is RISKY always as the loan will be backed by a security cheque (as probably your current CC debt is).
> ...


Im getting my friend to pay it back, but he is doing in pieces, threatened him saying ill file a police complaint and ask for 50k as compensatiom for breaking the trust. Its working, he has got a daughter, so im not really wiling to file complaint.

Im looking at about 60-70k in credit cards. Multiple cards  ill apply for loan but with proper analysis on montjly payments reduction only then ill accept if it really helps.


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## rsinner (Feb 3, 2009)

Sasi Kumar Chandra said:


> Im getting my friend to pay it back, but he is doing in pieces, threatened him saying ill file a police complaint and ask for 50k as compensatiom for breaking the trust. Its working, he has got a daughter, so im not really wiling to file complaint.
> 
> Im looking at about 60-70k in credit cards. Multiple cards  ill apply for loan but with proper analysis on montjly payments reduction only then ill accept if it really helps.


with a credit card loan of 60K, you are paying not less than 2% a MONTH in interest. Annualised and compound that c. 27% per annum. With a personal loan, it will for sure be less than 10% per annum (most likely closer to 7%). There is a huge difference in cost. Even if you consolidate into a single credit card, your cost will be the same. With a loan, ONLY take the amount which equals the credit card debt.


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## BedouGirl (Sep 15, 2011)

rsinner said:


> with a credit card loan of 60K, you are paying not less than 2% a MONTH in interest. Annualised and compound that c. 27% per annum. With a personal loan, it will for sure be less than 10% per annum (most likely closer to 7%). There is a huge difference in cost. Even if you consolidate into a single credit card, your cost will be the same. With a loan, ONLY take the amount which equals the credit card debt.


To add to what everyone else is saying. If you do the consolidation and clear your cards, cancel them immediately. You mustn't use them again. It's a slippery slope and easy to end up in a never ending cycle of debt here.


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## Sasi Kumar Chandra (Dec 7, 2014)

That will be my first step to tear apart all cards once i consolidate. Thank you all for your comments. Hoping for a better year next year. The labor ban also gonna be no more from jan. So i should be able to move to higher paid salary to get back on track sooner.  need all your prayers friends.


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## BedouGirl (Sep 15, 2011)

Sasi Kumar Chandra said:


> That will be my first step to tear apart all cards once i consolidate. Thank you all for your comments. Hoping for a better year next year. The labor ban also gonna be no more from jan. So i should be able to move to higher paid salary to get back on track sooner.  need all your prayers friends.


Good luck!


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