The National features a reader’s personal finance issue. Experts from financial sector share their thoughts on the topic and provide a solution.
Here is what Ambareen Musa had to say:
Many UAE residents find themselves caught in a spiralling debt cycle, given the high interest and profit rates on credit cards in the country.
Assuming you have an outstanding credit card balance of Dh20,000 and can only afford to pay off Dh2,000 each month, you will take almost 13 months to pay it all off, which includes more than Dh4,000 in interest payments alone. This is based on an average monthly interest rate of almost 3 per cent.
Given this scenario, many banks in the country offer a 0 per cent balance transfer option for a limited tenure to attract consumers.
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