I am the breadwinner in my five-member family and earn a monthly salary of Dh18,000 as a chef in a hotel. I have never taken my family on holiday except to my home country of Sri Lanka.
Following the Covid-19 movement restrictions last year, we wanted a break and decided to finally take a holiday. However, I didn’t want to use our savings to pay for it, so took out a personal loan of Dh30,000. I used all the money to book the flight tickets and pay for the holiday to Paris.
However, my salary has since been reduced by 20 per cent after the pandemic and I am now struggling to meet the loan repayments, school fees for three children, credit card debt and other living expenses.
My loan instalment each month amounts to Dh4,000, I have credit card dues worth Dh12,000 and other expenses worth about Dh11,000 every month. I also need to remit money to my parents every month since they are dependent on me. I am struggling to make ends meet and tapping into my savings is my last resort.
With the uncertainty we endured last year, I want to have the cushion of an emergency fund in case things go wrong. What are my options to get out of this debt spiral? LM, Sharjah
Debt panellist 1: Steve Cronin, founder of DeadSimpleSaving.com
I understand that keeping your family happy and creating amazing memories together is important, especially after the lockdown. I hope you all had a great time in Paris.
With travelling, you can enjoy planning, experiencing and remembering, so it usually provides good value for money, especially if you can control your budget.
I also understand that you didn’t want to eat into your savings, which will provide for your future. Unfortunately, that is now what you are likely to have to do.
Going into debt is not the right way to pay for a holiday. A loan is best made against an asset that at least holds its value. Properties are OK, with the risk that the value could fall, and a second-hand car's value go down more slowly than a new car.
Borrowing for a holiday requires a personal loan or a credit card and both of these are dangerous if your salary drops. In addition, you seem to have borrowed for the holiday while already having credit card payments and expenses of more than Dh23,000, plus whatever you send your parents.
Given your salary was Dh18,000, you couldn’t afford the loan even before your salary was cut. What you should have done was to create a sinking fund for your holiday and invest Dh1,000 to Dh2,000 every month until you had enough saved up for a debt-free holiday. This requires advanced planning and discipline.
It is not clear whether you have a credit card balance that you roll over each month or you pay it off in full. If you are rolling the balance over, you should look at a consolidation loan that will merge your credit card and personal loan debts at a lower overall interest rate.
Assuming the interest rate on your personal loan is above a 5 per cent reducing rate, you should probably use your savings to pay it off. This will free up part of your salary to cover your other expenses and eventually start saving again. Your main problem is not one of juggling interest rates between your debt and your savings or investments. Your problem is cash flow.
You cannot sustain spending more each month than you earn. You need to boost your income and rapidly reduce your expenses. Can you keep an eye out for other jobs? Can you earn additional money? Does your wife work?
You must reduce your expenses below your income, even if that means making tough decisions about what to cut. Look at the large items and the small items that add up over the month.
Go through your card statements and receipts to identify expenditures that are not essential. Get your whole family in on this for ideas – it will be a useful lesson for them and there is no shame. They enjoyed a nice holiday and now it’s time to tighten the belt.
Once you are able to save some money each month, you will be able to replenish your cash savings and eventually start investing for the future.
Debt panellist 2: Philip King, head of retail banking at Abu Dhabi Islamic Bank
Your instinct to build an emergency fund is the right one. We should all save at least three months’ salary just in case the worst happens.
However, given your recently reduced salary and increased level of debt, you are unlikely to be able to afford to build up an emergency fund right now. However, you mentioned that you chose to fund your family holiday with new debt rather than with your savings.
I would strongly advise that you meet your bank. They might suggest consolidating your debts into one loan so you will be better off in the long run if you pay down the debt and credit cards in instalments.
If you have enough in your savings to do this, it will ease your monthly spending pressures, alleviate what is no doubt a tremendous level of personal anxiety and provide fiscal breathing space to slowly start building your savings again.
It will cost more in interest in the long run than your current agreement but if you are unable to make payments, it is cheaper as defaulting, paying late payment fees and compounding interest will drive your debt higher
Carol Glynn,
founder of Conscious Finance Coaching
If your savings do not cover the Dh30,000, then you must speak to your bank manager as soon as possible to discuss your situation.
Your bank might respond sympathetically to these circumstances and could help you to either refinance your borrowing or agree to a lower monthly repayment rate. If you refinance, make sure that the monthly payments are affordable. Speak to them openly and you will most likely be able to reach a mutually agreeable solution.
If and when a crisis occurs, that fund will give you the reassurance you need to see it through and help you to avoid borrowing, which is never a good idea in times of such uncertainty. Good luck with this.
Debt panellist 3: Carol Glynn, founder of Conscious Finance Coaching
It isn’t advisable to take out a personal loan to pay for a holiday. That is now over but you are paying for the loan with interest on top. Use this experience as a lesson to only pay for holidays from savings.
Contact your bank to explain your salary has been reduced and discuss a debt restructuring. If you extend the period of the loan, you will be able to reduce the monthly instalment.
It will cost more in interest in the long run than your current agreement but if you are unable to make payments, it is cheaper as defaulting, paying late payment fees and compounding interest will drive your debt higher. You will also have to consider the negative impact on your credit score.
It is extremely important to pay off your credit card debt as soon as possible. They carry very high interest rates and payment default charges and can snowball quickly.
If you have enough funds in your savings, consider using it to clear your credit card. If not, speak to the bank about a consolidation loan combining your holiday loan and your credit card debt. Then cancel your card so you are not tempted to raise debt again while you are still paying off your personal loan.
It is very sensible to have an emergency fund and well done for having one. Its core purpose is to allow you to cover unexpected expenditures during times of need.
Being unable to service your debt is one of the reasons we recommend people have an emergency fund saved. I would urge you to consider using at least some of this to help you pay off your debts.
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
How much do leading UAE’s UK curriculum schools charge for Year 6?
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- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
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Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.
She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.
She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.
The couple were married in August 2009 in Winchester and their daughter was born in June 2014.
She was held in her native country a year later.
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- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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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.
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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.
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Killing of Qassem Suleimani
