According to research, there are currently over five million credit card holders in the UAE. This amounts to a whopping 63% of the population!
As credit cards become a staple across the country, people are increasingly signing up to reap the incredible benefits. And while credit card signups are on the rise, excessive expenditure and misuse are also more common than ever.
If you’ve found yourself struggling to pay off your credit card debt in the UAE, take a deep breath.
Before you begin to panic, it’s important to remember that there’s an easy and efficient way out.
Here’s how you should get started.
Consider Paying High-Interest Debt First
Once you’ve calculated your total debt, we suggest deciding on a repayment strategy. Paying high-interest debt on priority is a great way to get rid of your debt in the least amount of time.
Make minimum payments on each card (if you possess multiple cards, that is), and use the bulk of your money to pay off high-interest debt.
This strategy will help you save a ton of money on interest and you’ll find yourself waving your debt goodbye in three fewer months than what it would normally take.
Request Lower Interest Rates
In many cases, just a short phone call can fix a lot of damage. If you have a good credit score, you can get a reduced rate and save more money than you’d think.
It also helps if you’re a long-time customer.
By getting a few percentage points sliced off the total amount, you’ll end up with a lighter loan that can be easily paid off.
Create a Budget
One of the easiest ways to crawl out of credit card debt is by creating a budget.
Sounds boring, doesn’t it? But while budgeting sounds like a chore you’d rather put off, it works well and it works fast.
Calculate your total expenditure and determine the areas that pulled most of your income, i.e., the reason you found yourself knee-deep in credit card debt in the first place. Try to find more affordable alternatives or limit the amount of money you spend on each of these products/services.
Stick to the plan and you’ll save a lot of money that makes credit card debt payment much easier than anticipated.
Opt for Debt Consolidation in the UAE
Struggling to find a sustainable way out? Opting for debt consolidation is one of the most effective ways to pay off credit card debt. In a nutshell, debt consolidation is the process of combining multiple loans into a new loan with better terms, including a lower interest rate, lower monthly payments, and flexible tenure, among others.
At Money Gulf Emirates, we make things much simpler for people who are in a bind. We list providers who offer loan amounts of up to AED 1 million and flexible repayment terms so you can pay off your credit card debt with ease.
Find out more about our debt consolidation services in UAE to get started! Our goal is to allow each client to compare credit cards, loan offerings, and other financial services so they can make an informed decision.
Apart from making services for credit card settlement in UAE more accessible, we also list providers who offer salary transfer loans and quick loans/smart loan in Dubai, Abu Dhabi, and Sharjah.
Call (+971) 528-651530 to familiarize yourself with our personal loan application process.