For a number of years, I maintained a good relationship with the banks that I have accounts with in the UAE and never missed my credit card repayments.
At the beginning of the movement restrictions in the UAE in March last year, I was on annual leave in my home country of Pakistan and was unable to travel back to the Emirates to resume my job.
In April 2020, I received a letter from my company informing me that my job had been terminated due to the global Covid-19 situation and travel restrictions.
Since then, I managed to pay a few instalments on my three credit cards, which are with three different banks. One credit card is fully paid off. Now, however, I have no money left to pay my remaining debts.
I have emailed the two banks several times to request that they put my monthly repayments and late charges on hold until I can return and clear my outstanding dues. It is important to me that I continue the good relationship that I have with my banks and avoid their threats of legal action or a travel ban.
However, the banks have ignored my emails and I cannot visit them in person. I remain unemployed in Pakistan, so currently have no means to start repaying my monthly instalments. I have eight dependents relying on me as the breadwinner of my family, including my father, who became paralysed in December 2019, and my mother, who lost her sight in March 2020.
I don't know what to do anymore – can you help to guide me to find a solution? TA, Pakistan
Debt Panellist 1: Steve Cronin, founder of DeadSimpleSaving.com
Not paying off your credit card in full every month makes you vulnerable to unexpected events, which is exactly what happened here. Nobody could have predicted the pandemic, though you could have been fired anyway and found yourself in a similar situation. A credit card is not an appropriate tool for borrowing money and rolling the debt over from month to month – the interest rate is far too high.
Under the Central Bank of the UAE's Targeted Economic Support Scheme (Tess), you should have been entitled to an interest-free payment holiday of at least three months on presenting the banks with proof of job loss. In theory, this is still available but it may be hard to get your banks to grant it while you are out of the country.
Given you have been regular with your payments in the past and are being forthcoming with regards to your current situation, you may request them to defer the payment start date for your new loan by three months
With annual interest rates of 40 per cent or more, your debt will be ballooning rapidly in the UAE. Try phoning the banks and insisting you are put through to someone who can discuss your debt with you. It may be an expensive call from overseas but otherwise you will make no progress. Be clear that they need to work constructively with you if they are to get the money back.
You may have to look beyond the UAE for work, to other GCC countries or further afield. It will be difficult for any UAE employer to bring you into the country on a visa if you have unpaid debts. Meanwhile, do whatever you can to bring in some income and focus on looking after your family. You will be able to earn more once the pandemic passes, even if this takes a while.
Are any of your dependents able to work? There are ways to earn small amounts of money online, such as taking surveys on prolific.co or freelancing on upwork.com. Think what skills you have that may translate into ways to earn money, even if it is outside your industry.
Debt panellist 2: R Sivaram, executive vice president and head of retail banking products at Emirates NBD
You have gone through some very unfortunate circumstances and I empathise with your situation. I would recommend that you inform both the banks of your current situation and request them to restructure your credit card debt into a loan.
The restructured loan will have a longer tenure with a lower and fixed interest rate, which would allow you to prevent your debt from ballooning because of the higher interest rates.
Given you have been regular with your payments in the past and are forthcoming with regards to your current situation, you may request them to defer the payment start date for your new loan by three months. This would hopefully give you sufficient time to find suitable employment to start servicing your debt.
I wish you the best of luck in finding suitable employment at the earliest and a speedy recovery for your family.
Debt panellist 3: Carol Glynn, founder of Conscious Finance Coaching
I’m sorry to hear you are facing such difficulties. It’s no doubt a very stressful situation to be in, but well done for continuing to communicate with the banks and not ignoring the issue. This will benefit you in the long run.
Have you tried calling them? Banks are often more responsive by phone and it's easier to build a relationship with a manager or senior person who has the authority to make decisions and help you.
Having a relationship with a senior manager who understands your personal circumstances can help when facing issues such as yours, so ask to speak to someone senior, get their name and number and communicate directly with them as much as possible.
If you call and the bank continues to be unresponsive, I would recommend you write an email documenting your situation, your past good credit history and every attempt you made to communicate with the bank.
Submit the email through the bank's official complaints email address and ensure you keep a copy for your records. You could also request an online meeting, such as through the free Zoom platform, to discuss your situation.
The UAE Central Bank's guidelines allow the bank 30 days to respond and for a satisfactory resolution to be found. After this, if you are still unhappy with the bank's lack of communication, you can raise a complaint with its Consumer Protection Department.
Lodging a complaint with the UAE Central Bank should be considered as a last resort as, ideally, you can work out a repayment plan with the bank directly, which will help you maintain the relationship you fostered before your current situation arose.
Regarding income, are there opportunities to earn money while you are in Pakistan? Any small contribution towards your debt will not only help reduce the compounding effect of fines and interest, but will also show a willingness to pay and may also help maintain a positive relationship with the bank.
Do you have any skills you could use to obtain freelance work? Common sources of additional or temporary income include website design, copywriting, admin assistance and consulting work, or even tutoring in a subject you are knowledgeable in. I see you are eager to return to the UAE to work but if there are part-time or temporary opportunities in Pakistan, I would recommend you seek them out so you can earn an income while you work on returning to the UAE.
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
TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)
What is THAAD?
It is considered to be the US's most superior missile defence system.
Production:
It was created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
More coverage from the Future Forum
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
Results
6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m
Winner: Ziyadd, Richard Mullen (jockey), Jean de Roualle (trainer).
7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m
Winner: Barney Roy, William Buick, Charlie Appleby.
7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m
Winner: Secret Advisor, Tadhg O’Shea, Charlie Appleby.
8.15pm: Handicap (TB) $175,000 (D) 1,600m
Winner: Plata O Plomo, Carlos Lopez, Susanne Berneklint.
8.50pm: Handicap (TB) $135,000 (T) 1,600m
Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.
9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m
Winner: Gladiator King, Mickael Barzalona, Satish Seemar.
More coverage from the Future Forum
First Person
Richard Flanagan
Chatto & Windus
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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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.
As You Were
Liam Gallagher
(Warner Bros)
STAR%20WARS%20JEDI%3A%20SURVIVOR
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AUSTRALIA SQUAD
Aaron Finch, Matt Renshaw, Brendan Doggett, Michael Neser, Usman Khawaja, Shaun Marsh, Mitchell Marsh, Tim Paine (captain), Travis Head, Marnus Labuschagne, Nathan Lyon, Jon Holland, Ashton Agar, Mitchell Starc, Peter Siddle
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
MATCH INFO
What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
UAE currency: the story behind the money in your pockets
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
