Ambareen Musa, Founder and CEO of Souqalmal.com, lists six steps to help anyone dealing with debt, work out a customized repayment strategy to become debt-free sooner:
Debt, if left overlooked, can spin out of control, very fast. Many UAE residents find themselves reeling under a personal debt crisis, simply because they borrowed more than they could afford to repay, or were not aware of how overwhelming the debt can become if not managed properly. Here are six steps to help anyone dealing with debt, work out a customized repayment strategy to become debt-free sooner:
Make a list of all your debts
The first step is to take stock of your current debt situation and to figure out exactly how much debt you owe. Start with listing all your existing debts – all loans and credit cards – along with their interest/profit rates and the outstanding amount for each.
Calculate your DBR – Can you negotiate a better payment plan with the banks?
Once you have your total debt calculated, the next step would be to calculate your Debt Burden Ratio (DBR) or debt-to-income ratio, which shows how much of your income goes towards debt repayments every month…
For full article go to Khaleej Times.