With its busy way of life and the high cost of living, Dubai can occasionally cause a strain in a person leading to various debts that the majority of other locals have whereas they find themselves as they struggle to make ends meet. Paying credit cards, personal loans, car loans, and all other financial issues may soon get out of control. And in case you cannot manage to repay the payments, then a debt consolidating consultant in Dubai is what you should seek.
These are special financial professionals whose trade is to assist individuals to reorganize their debts, deal with their creditors and come up with sustainable repayment schedules. In this guide, you will learn 5 best advantages of taking a debt consultancy service in Dubai and how it will assist you to come out of the financial pit.
1. Master negotiation with creditors
Dealing with several creditors that have different interest rates, payment terms and other penalties is one of the largest challenges in dealing with the debt. When you default, the creditor can levy a late fine or charge an increased interest rate or even file lawsuits like travel prohibition or freezing of bank accounts within the UAE.
The role of the consultant in it
A debt consolidation consultant like Instant debt management service (IDMS) is the one in between you and the creditors. They are used to negotiating with the banks and financial institutions to:
- Loan rates are lower- Decreasing the total amount that you pay on the loans.
- Forget late charges and fines – Saving you hundreds or thousands of dirhams.
- Loan grant periods more favourable- Loan repayment periods are extended.
An Example
One of the clients was a person living in Dubai whose credit card debt was AED 150,000, and the interest rate was 24 percent, and he could barely make 2% of the minimum payment. Next, they got a consultant on board and managed to bring the same to 12%, making it AED 2,800 per month as opposed to AED 5,000.
2. Individual debt repayment plan
Personal loans, balance transfer credit cards, and other solutions offer individuals a chance to get out of debt on their own, and not always is the cause of debt the problem. Lacking a systematic program it is easy to end up back into financial mayhem.
What a debt consultant like IDMS will examine are your:
- Amount of total debt
- Income and expenses monthly
- Financial history & score
It is on this basis that we develop a tailor-made repayment plan that suits your pockets but also makes you pay your debt effectively.
Some main characteristics of a good plan:
- Also gives priority to high-interest debts (long-term saving of money)
- Estimates the payments per month and fixed within realistic limits (does not stress one financially in a harsh way)
- Covers financial literacy (avoids debts in the future)
3. Legal relief
UAE has tough laws of debt collection and the failure to pay off loans may result in:
- Traveler restrictions (not letting you out of the country)
- Freezing of bank accounts (this is where accessibility of money becomes impossible)
- Court battles and possible jail (when extreme occurs).
The way in which a Consultant can look after you:
- Reconstitute payments in order to avoid default.
- Avoid litigation by arriving at negotiation.
- Manage court proceedings in case they occur (other consultants liaise with legal practitioners).
Case Study
One expat in Dubai was banned because they were having credit card debt. The ban was lifted and a settlement plan was negotiated with the bank on which they could pay back the debt in installments. A debt consultant did this.
4. Fewer interests and fees
Credit cards in Dubai can have interest rates as high as 36% per year. Personal loans range from 6% to 15%. Without proper management, you could end up paying thousands in extra interest.
How a consultant reduces costs:
By combining debts into a single loan with a lower interest rate, a consultant can help you:
- Lower overall interest payments
- Eliminate unnecessary fees, such as late charges and over-limit fees
- Reduce the total repayment amount
5. Reduce Stress and Improve Financial Discipline
How a Instant debt management service (IDMS)helps:
- They handle creditor calls and save your hassle
- Helps you with proper planning.
- Gives you ongoing support to keep you on track.
What is the correct time to hire a debt consultant?
Consider professional help if:
- You have piling up high interest debts
- You’re missing payments or facing legal threats.
- You are missing installments/payments or anticipate getting into legal trouble
- You’re overwhelmed and don’t know where to start.
How to choose the right consultant in Dubai?
Not all debt consultants are the same. Look for:
- Who have been licenced by the UAE authorities
- Preferably who can provide you with clear fees and no hidden charges
- Someone with a good client portfolio and credibility.
IDMS checks all the boxes for you for above listed points!
Final thoughts
Hiring a debt consolidation consultant in Dubai can offer:
- Aid in negotiating debt with creditors
- A repayment plan that suits you
- Help in legal trouble
- Savings in debt interest
- Much less stress and better money handling
If you are someone who is struggling with excessive debt and looking for a professional to help you navigate through financial trouble, a consultant doesn’t just help you pay off debt, they also help you build your financial future.
Next Steps
- Assess your debt by listing all of your lendings and interest
- Look for reputable consultants and cross check their reviews and credentials
- Try scheduling a consultation, a lot of them offer free initial services and advice.
By taking action today, you can break free from debt stress and move toward financial freedom in Dubai.
