As part of the Debt Panel, The National published an article on debt concerns of a Dubai optometrist who has accumulated a debt of up to AED 150,000 paying off his mother’s cancer bills. Souqalmal Founder & CEO Ambareen Musa discusses how the issue can be tackled.

I work as an optometrist in Dubai and have been struggling lately to pay off my debt. All these expenses were for medical purposes (cancer treatment) for my mother, who lives in Mumbai. I have seven credit cards. In addition I’m paying Dh3,200 every month for a ADCB smartloan; it has an outstanding balance of Dh76,000. My salary comes to roughly Dh8,900 a month, though this can vary sometimes because of commission. How can I settle this? SM, Dubai

Here is what one of the debt panellist – Ambareen Musa had to say:

Based on the details provided, the total outstanding amount on your seven credit cards is about Dh75,000. But the alarming fact is that this amount would have increased even further by the time you see this response. What’s the reason behind this? Excessively high interest rates on credit cards averaging close to 40 per cent annually (Annual Percentage Rate).

Getting rid of this expensive credit card debt should be your top priority. A debt consolidation loan could be a solution. This would allow you to roll your existing credit card debt and personal loan into one consolidated loan. Not only will this lower your interest payments, but will also help set up a more manageable monthly repayment schedule.
For full article go to The National