I owe Dh110,000 on two credit cards and until recently was paying the minimum amount every month. I was made redundant from the hospitality sector last year when my employer restructured and I have been without a job for 14 months. Before losing my job I was earning Dh18,000.
I have been trying to find a job but it's taking longer than expected. I built up the debt paying for everyday expenses and by withdrawing cash to pay rent.
When I was made redundant, I approached the bank for credit shield insurance and was told the insurance company would pay Dh48,000. However, I was later informed that I need to be on a company visa to take advantage of this. This did not seem logical to me as I had been made redundant so how could the company keep me on their visa?
My debts are:
Credit card 1: Dh80,000 (Dh3,600 minimum payment)
Credit card 2: Dh30,000 (Dh1,800 minimum payment)
Total: Dh110,000 (Dh5,400 in minimum payments)
I later approached my lenders for a settlement plan, asking if I could only pay the principal amount and not the interest. They asked me to pay a higher amount on a monthly basis for one year, which I could not afford.
I have been trying to find a job but it's taking longer than expected. I built up the debt paying for everyday expenses and by withdrawing cash to pay rent. For the last year I have relied on family and friends to survive. I also support family in India. My expenses come to Dh16,000 and include Dh4,000 for rent, Dh1,000 for petrol, Dh5,400 for credit card payments and Dh4,000 for personal expenses.
Now I have defaulted on the payments for the past three months as I have no source of income. The bank now says it will file a legal case against me. I have spent 26 years in UAE and in the past I have always been a bank customer who had no debits et cetera. What should I do? GP, Dubai
Debt panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
You are taking the right steps by keeping your lenders informed about your situation, as it exhibits you are financially responsible towards meeting your financial obligations.
With the current economic slowdown and job market tensions caused by the global pandemic, the UAE has implemented debt support measures and relief to help the community prioritise meeting their living expenses, as well as immediate financial commitments. With that being said, the Central Bank of the UAE announced its Targeted Economic Support Scheme, which was boosted to Dh256 billion, including deferral of loan principal and interest payments, which allows banks to grant temporary relief for loan payments until the end of the year.
Given these circumstances, banks are being encouraged to co-operate and support their customers. It is advisable to contact your lenders and discuss repayment options or temporary relief that can be offered to you in light of above developments. Explain to them the circumstances of your default and reinstate your commitment to repaying the debt once you secure a job.
Alongside your efforts with your banks, consider decreasing your expenditure as much as possible through stringent budgeting, or liquidating any of your assets, or even contacting family from back home for financial assistance.
Debt panellist 2: Ambareen Musa, founder and chief executive of Souqalmal.com
Surviving in the UAE without any source of income sounds incredibly difficult. And in your case specifically, the cost of living, visa sponsorship and debt commitments have forced you to rely on friends and family to get by. This is not a sustainable plan for the long term.
Let's address your credit shield claim first. Credit shield provides insurance coverage to repay your outstanding credit card balance in case of unforeseen and involuntary unemployment, among other benefits. However, this involuntary loss of employment (ILOE) benefit comes with a long list of terms, conditions, limitations and exclusions. For example, redundancy must not be a result of misconduct, underperformance, exceeding holiday allowance et cetera. You must also be on a full-time permanent employment contract, and should have been employed for at least six months under such a contract.
Ideally, you should check the credit shield terms and conditions under your credit card to understand the exact details of coverage. Ask the bank for a copy of the benefits schedule under the credit shield product you had signed up for. If you still feel you've been unfairly denied the benefits, you can approach a legal expert to take a look at the credit shield contract and lodge a complaint with the central bank.
On the employment front, this is undeniably a difficult time to find a new full-time job. The hospitality sector is among many others to have been financially affected by the coronavirus pandemic. However, you could look for part-time or freelance work to start earning some cash to pay down and settle your credit card debts.
If all else fails, you have the option of declaring bankruptcy under the UAE's new insolvency law. However, the provisions under this law come with their own terms and conditions. For instance, debtors can request a court-approved repayment plan only if they're about to default on their monthly payments or have missed a repayment within the last 40 days. A legal counsellor can help you navigate this. You can approach the Indian consulate and the Indian Workers Resource Center (http://iwrcuae.in) to seek legal advice on how best to tackle the situation you are in. The IWRC offers free legal counselling sessions for Indians in distress in the UAE. They run a toll free helpline too (800 46342).
Debt panellist 3: Steve Cronin, founder of DeadSimpleSaving.com
Fourteen months is a long time to sustain yourself without a job. Even if you had a cash buffer, that would likely last you six to 12 months. Withdrawing cash on your credit card to pay rent was a big mistake though. The charges for using your credit card as a debit card to take out cash are severe.
It also suggests you were living beyond your means before you lost your job, if you couldn’t cover your rent from your income. Too many people are living an unsustainable lifestyle in the UAE and then an unexpected change like losing their job triggers major difficulties.
Your bank is not being helpful at all and you should push them harder. Consult a lawyer about your credit insurance, assuming you took the insurance policy out while on the company’s visa. Try to find someone more senior at the bank to talk to, as you should be eligible for debt restructuring. Take advantage of new payment holiday regulations that have come in to support people during the Covid-19 outbreak. You can also approach the court and apply for insolvency proceedings, given you have defaulted on your payments.
Unfortunately, it will now be extremely hard to find work in hospitality, as everyone is in lockdown and all the hotels and restaurants are closed. But don't give up. You will need to get creative about what skills you have that businesses need, even in other industries. Polish your CV, connect to people on LinkedIn and through your community, write articles and get yourself noticed.
There is one area where you have experience and that is not having a job. Now many people are in the same boat and they are looking desperately for guidance. It is tough to lead when you are feeling beaten down by the banks and your industry, but the connections you make now if you hustle hard enough could be transformative. There are likely more opportunities online than offline at the moment.
It is essential that you drastically reduce your expenses at this time. Dh16,000 is close to your previous Dh18,000 salary. If you want to stay in the UAE, you will have to slash your rent and your personal expenses – look at the large items and which small items are adding up. You cannot sustain anything like your previous lifestyle until you get a job.
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
The%20specs
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Killing of Qassem Suleimani
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
Read more about the coronavirus
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
FIGHT%20CARD
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COMPANY%20PROFILE
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Teaching in coronavirus times
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
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.
Killing of Qassem Suleimani
Factfile on Garbine Muguruza:
Name: Garbine Muguruza (ESP)
World ranking: 15 (will rise to 5 on Monday)
Date of birth: October 8, 1993
Place of birth: Caracas, Venezuela
Place of residence: Geneva, Switzerland
Height: 6ft (1.82m)
Career singles titles: 4
Grand Slam titles: 2 (French Open 2016, Wimbledon 2017)
Career prize money: $13,928,719
UAE currency: the story behind the money in your pockets
The specs
BMW M8 Competition Coupe
Engine 4.4-litre twin-turbo V8
Power 625hp at 6,000rpm
Torque 750Nm from 1,800-5,800rpm
Gearbox Eight-speed paddleshift auto
Acceleration 0-100kph in 3.2 sec
Top speed 305kph
Fuel economy, combined 10.6L / 100km
Price from Dh700,000 (estimate)
On sale Jan/Feb 2020
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
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
About%20My%20Father
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
UAE currency: the story behind the money in your pockets
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%3Cp%3EAriana%E2%80%99s%20Persian%20Kitchen%3Cbr%3EDinner%20by%20Heston%20Blumenthal%3Cbr%3EEstiatorio%20Milos%3Cbr%3EHouse%20of%20Desserts%3Cbr%3EJaleo%20by%20Jose%20Andres%3Cbr%3ELa%20Mar%3Cbr%3ELing%20Ling%3Cbr%3ELittle%20Venice%20Cake%20Company%3Cbr%3EMalibu%2090265%3Cbr%3ENobu%20by%20the%20Beach%3Cbr%3EResonance%20by%20Heston%20Blumenthal%3Cbr%3EThe%20Royal%20Tearoom%C2%A0%3C%2Fp%3E%0A
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Types of bank fraud
1) Phishing
Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
4) SIM swap
Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
5) Identity theft
Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
