I have been juggling a few debts for the past couple of years and they are now beginning to catch up with me.
I took out a personal loan two years ago with the aim of paying off my three credit cards. I did pay them off, but since the Covid-19 pandemic started, my salary has been reduced and I have been relying on my credit cards to pull through the month financially.
I have now brought them back up to their limits – one of Dh10,000 and the other two are Dh15,000. I am also still paying the personal loan, which is slightly more than Dh1,000 in monthly instalments.
My biggest issue is that I am taking cash from the cards each month to pay the minimum amount owed on them, so the balances are not coming down.
Would you suggest restructuring my debts to pay off the personal loan and the credit cards at once and starting all over again with a new personal loan? I am not sure what to do and am worried that I will never get out of debt and start saving. BK, Dubai
Debt panellist 1: Steve Cronin, founder of DeadSimpleSaving.com
You are trapped in a debt spiral of building up card balances, paying the minimum on them by adding further to the balances and then consolidating them with a personal loan.
Taking cash on credit cards is to be avoided except in dire emergencies. As you have seen, there is a fee for taking the cash out, then an immediate increase in balance and interest on that balance. No wonder you have hit your limits again.
This is simply buying you time, but it is no way to live. You correctly worry that you may never save or have anything to show for your hard work if you carry on this way.
You also have no spare buffer to provide resilience – losing your job, taking another pay cut or dealing with a large hospital bill back home could put you in real trouble.
You must resolve to radically change your life and your approach to debt. It will be painful until your debt is reduced and the job market improves. It will, however, put you back on track for a financially secure future.
First, secure a debt consolidation loan (again). Prepare a summary of your debt, income, monthly payments and other expenses. Check with your bank and even with other banks to find the best interest rate.
Understand the effect of extending the term of your loan as it may reduce your monthly payments to a more sustainable level, even if it takes you longer to pay it off. Remember, your first task is to ride out this post-Covid period of uncertainty.
The consolidation loan will give you some breathing space but, this time around, ensure that you do not build up your card debt again. You must do everything you can to boost your income and slash your expenses.
Is there any additional work you or family members can do? Become creative and resourceful. Can you downsize your living quarters, send family back home and cut your phone, food and travel expenditures? Set a strict budget for each category per month and do not exceed it.
If you must use a credit card, pay it off immediately in full. You must restore the link between spending and paying, almost as if it is a debit card. Living within your reduced means, probably throughout 2022, will give your best chance of a better life.
Debt panellist 2: Philip King, head of retail banking at Abu Dhabi Islamic Bank
I am sorry to hear you are in this situation. It is important to know you are not alone in dealing with this problem, so asking for help is the first step to putting things back under control.
A debt restructuring plan can be a good solution by consolidating your loan and credit cards into one monthly payment, which some people find much easier to manage than dealing with several bills.
It is vital to be on top of all your spending and debt repayments, and to keep the total of these lower than your income so that your total debt can come down each month.
Taking cash advances on credit cards is the most expensive way to use your credit card as you are charged large transaction fees, while the interest on cash advances is higher than that of standard credit card purchases
Carol Glynn,
founder of Conscious Finance Coaching
If you decide to try to pay each debt off individually, it is best to list them in order of the highest to lowest interest rate, which is often referred to as "APR", or annual percentage rate. Pay off the highest on the list first until it is completely gone, and then pay each one off in that order.
So, for example, paying off a credit card with a 39 per cent APR until it is zero and then paying off a card with a 29 per cent APR next can save you significant amounts, compared with paying the same amount each month on all the cards.
This will also help you to clear your debts quicker. However, you will also need to make the minimum payments on the other cards to avoid charges.
To help you make an informed decision on whether to take out a further personal loan, try to gain a clear understanding of the monthly instalment you would pay if you consolidated all four debts into one and compare this to the payments you make each month across all products.
Then you can determine whether this will really help you to reduce your debts over time.
Debt panellist 3: Carol Glynn, founder of Conscious Finance Coaching
This is a difficult situation you are in but it is clear you have done your best to keep up with minimum repayments. This shows responsibility and a willingness to resolve your situation.
However, taking cash advances on credit cards is the most expensive way to use them as you are charged large transaction fees, while the interest on cash advances is higher than that of standard credit card purchases.
Also, interest is usually accumulated from the date of the transaction, making it even more expensive. While well-meaning, this approach will make clearing your balance even harder in the long run. I suggest you cease this practice and find other ways to fund your minimum payment requirements.
I would recommend requesting a consolidation loan from your bank. Shop around with other banks so you can find the best interest rate available. Once you receive the cash, pay off all your debts and then cancel your credit cards. This will reduce the risk of raising your credit card debt again.
Can you reduce your expenses in any way? Print out your credit card and bank account statements and review them in detail. Is there any scope to reduce expenses?
Common ways to save include cancelling subscriptions, reducing your use of taxis, buying your groceries from cheaper supermarkets, cutting down on eating out and food deliveries, and socialising less for a period of time. No matter how small the savings may seem, every dirham you can reduce will help to ensure you are closer to clearing your debt.
Many companies are reporting they are returning to pre-Covid levels of business activity. Have you discussed the reinstatement of your previous salary with your employer? I would suggest discussing this with your manager as this will help you resolve your debt situation faster.
As soon as you are able to meet your monthly debt responsibilities, make sure to also set an amount aside every month towards an emergency fund. This will provide some financial security and help to protect you from falling into this debt situation again.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Killing of Qassem Suleimani
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Emirates Cricket Board Women’s T10
ECB Hawks v ECB Falcons
Monday, April 6, 7.30pm, Sharjah Cricket Stadium
The match will be broadcast live on the My Sports Eye Facebook page
Hawks
Coach: Chaitrali Kalgutkar
Squad: Chaya Mughal (captain), Archara Supriya, Chamani Senevirathne, Chathurika Anand, Geethika Jyothis, Indhuja Nandakumar, Kashish Loungani, Khushi Sharma, Khushi Tanwar, Rinitha Rajith, Siddhi Pagarani, Siya Gokhale, Subha Srinivasan, Suraksha Kotte, Theertha Satish
Falcons
Coach: Najeeb Amar
Squad: Kavisha Kumari (captain), Almaseera Jahangir, Annika Shivpuri, Archisha Mukherjee, Judit Cleetus, Ishani Senavirathne, Lavanya Keny, Mahika Gaur, Malavika Unnithan, Rishitha Rajith, Rithika Rajith, Samaira Dharnidharka, Shashini Kaluarachchi, Udeni Kuruppuarachchi, Vaishnave Mahesh
Indoor cricket in a nutshell
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
UAE currency: the story behind the money in your pockets
Sweet%20Tooth
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Engine: 80 kWh four-wheel-drive
Transmission: eight-speed automatic
Power: 402bhp
Torque: 760Nm
Price: From Dh280,000
Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
Wydad 2 Urawa 3
Wydad Nahiri 21’, Hajhouj 90'
Urawa Antonio 18’, 60’, Kashiwagi 26’
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
Without Remorse
Directed by: Stefano Sollima
Starring: Michael B Jordan
4/5
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Children: She has one son, Casey, 28
Hometown: Pontefract, West Yorkshire in the UK
Favourite book: The Alchemist by Paulo Coelho
Favourite Author: CJ Sansom
Favourite holiday destination: Bali
Favourite food: A Sunday roast
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
