As part of The Debt Panel, The National published an article on debt concerns of an Abu Dhabi employee whose total monthly debt repayments exceed his monthly income and his credit report reflects a total debt of Dh900,000. Souqalmal Founder and CEO Ambareen Musa discusses the concern.
I have a salary transfer account with one bank and a personal loan of Dh54,000 with the same bank. I also have two credit cards from two other banks. I work as a shift operation manager for a power company and my total monthly salary is Dh21,750. But my monthly loan repayments are:
• Dh12,500 for the loan repayment
• Dh6,200 for one credit card
• Dh5,200 for the second credit card
This takes my total monthly repayments to: Dh23,900……
Here is what one of the debt panellist – Ambareen Musa had to say:
First and foremost, did you know you can register a dispute with the AECB if you notice an error in your credit report? Here’s how. You have to provide the relevant documents to support your claim (account, card and loan statements from the bank). The bureau will investigate the information and provide you with a resolution within 20 working days. If the claim is verified, the disputed data will be amended in AECB’s database and on your credit report.
While the dispute process takes its course, you can start putting a plan together to tackle the debt you owe. Since your personal loan is a salary-transfer loan, it is most likely not a high-interest liability. And looking at how high the monthly instalments are, you seem to have taken the loan out for a short tenure. This would not be a bad thing if the loan was your only debt obligation. But there’s also the outstanding balance on your two credit cards, which is draining your income in exorbitant interest payments alone.
For full article go to The National