The National helps readers answer personal finance questions with the help of debt panelists which includes Souqalmal founder and CEO Ambareen Musa.

Two years ago, I asked a bank to restructure my credit card, so from Dh25,000, it became Dh36,000 (including the interest). That meant I only had to pay a monthly amount, which had a lower interest rate applied to it. Recently, I approached them to say I would pay off the full balance which at the time was Dh20,093. I also asked if I could just pay the principal amount, deducting the future interest on the loan. They said no, you have to pay this full amount (which includes all the interest). Is this the case for all credit card debts that have been restructured? RR, Dubai

Here is what Ambareen Musa had to say:

Under debt restructuring, the bank turns your credit card debt into an unsecured loan, wherein you are charged an interest rate and are required to repay the loan in monthly instalments over a fixed tenure. In essence, it works like a standard personal loan, but the terms and conditions may vary across banks.

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