In debt in Dubai: my story
“THERE is no more time for you.” That was the message from RAK Bank collections department on 8 June 2011.
I often find myself wondering how many people there are out there who are terrified that they will lose their families if they disclose the full extent of their debt? How many people are thinking of absconding, or, even worse, committing suicide as it seems to be the only way out?
How many people are drowning in debt and are living in constant fear that they will end up in jail? Or am I the only one who has made a complete mess of my finance and my life? Sometimes it certainly feels that way! This is my story...
Wife and mother
I’m a 40-something Western expat who has lived in Dubai for over a decade. I’m a wife and mother.
I’m well educated and, until recently, I had a good job with an international firm. I also have a staggering secret. Debt. And lots of it.
Drowning in debt
Eight banks, three loans and eight credit cards, over AED 800,000 ($217,800) of debt and monthly repayments totaling more than what I was earning in a month.
My debt is my dirty little, or very large, secret. My family and friends (including my husband) are not aware of my situation and, if I can prevent it, nobody will ever know.
I’m ashamed, I’m embarrassed and I’m scared. I don’t know where to turn or how to even start unraveling the mess I’ve created.
Constant demands
My phone rings off the hook with telephone calls from collection departments and I have been threatened with legal action, travel bans and jail more time than I can remember.
Worst of all, though, is dealing with the regular verbal abuse that the debt collectors dish out.
Last week when I was trying to explain that I’m currently unemployed and am looking for a new job so I can resume my payments a bank representative suggested that maybe I should consider going down to the York Hotel to find a “job” so that I could make my payment.
Continual harassment and strong-arm tactics seem to be usual practice and, according to the collections departments, there is absolutely no-one in any of the banks whom I can talk to about trying to negotiate a settlement plan. ‘Pay up or else’ seems to be the only type of settlement plan on offer.
A way out
Don’t get me wrong, I am not looking for sympathy or a free ride. If I’d wanted that, I would have left my car at the airport too. I’ve dug myself a very deep hole and am solely accountable for my actions. Now I just need to find my way out. This is my life.
I am hoping that by writing about my experience and how I got to where I am today, I might be able to help others who find themselves in a similar position and, hopefully, before too long, the light at the end of the tunnel will not see quite so far away.
Pic credit: Ambro/ FreeDigitalPhotos.net
Is ‘In debt in Dubai’ alone? Do you have similar problems? Or any advice for her? Share below.
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Comments
I almost had a same situation and after 3 years I could get out of it.
still the big part of problem is there but I am managing well and I hope by next June i will be debt free. If God Wish.
My message to "IN debt in Dubai" is that don't be afraid of bank calls and the only thing that makes you keep going and not giving up is believing in your self.I totally understand your feelings because I had exactly same situation with credit cards (11 cards and 2 loans).
you should believe that one day you will get out of it, that will motivate you to continue. There is always a solution for any problem.
I don't know how is your income and your payments but what I can tell you at the moment is to try to re structure your credit cards and don't go for new debt to pay your old debt, this is a big mistake.
good luck
Hello - thank you so much for the advice and the encouragement.
I am currently trying to negotiate with the banks to restructure my debt but as I am not working at the moment and don't have any money coming in it is proving quite difficult. I am hoping that I will have a job soon and that they will then look at my request more favourably.
If you have any advice on how to approach the banks it would be much appreciated.
Thanks again!
Hi everyone,
My name is Ismat and looking to help out my boyfriend in providing him the right information it might sound like a Cliche!!! however this is what had done to him self and seeking answers to his question
My boyfriend had used credit cards of around 10 local banks in uae though due to drecit crunch he recently lost his job the process was slow but finally it took place 4 months back,he is no more in dubai and sadly had to vacate the place in feburary without informing anyone and resides now in New york
What we want to know is he is now missing in dubai for last 2 months is there a chance to return back?
Since he is not able to pay these local banks anymore due to "No-Job" dillema can these bank trace him in Newyork by any chance and bring him back to dubai for any charges?
Any one who can help us we shall be grateful frankly what im suggesting him is not to come back and live his life even if he wanted to pay he needs a job and current market is pothetic ami right in my sugesstion as he dealt with all local bank who might not be able to trace him all the way to new york??
We are looking for a geneuine answer,it is agreed that what he did would be a crime but what should one do when there is no excape plan?? should he die behind bars for the rest of his life??
Thanks a bunch
Hi there, I am currently going through some debt issues here. I lost my job back in March and I have a loan with UNION NATIONAL BANK.
I have never missed any payments and always been up to date. However one week prior to my next installment I recieved an SMS from the bank ststing that a cheque issued my me was returned! I was surpirsed and called to double check.
This was infact true. I was unsure why as I said I have never missed a payment. They said it is because I lost my job. I was told I have to find another job and show the new contract.. or.. A guarantor, and this guarantor will sign for only a month?
Anyways tyis has all been a pack of lies from the bank as I got a new job and shown them the contract and now they are saying its not good enough, they now want a guarantor!! They have messed me arround for 3 months now. I have complained to the Central Bank and I am still waiting on a response. The bank say they recieved a complaint and they responded back.. However I havent had any reply!
Just this morning I receive a call from the Police Station telling me I must go in and see them?? I am scared because I fear that I will be placed in JAIL...
I have complied with everything asked of me.. appart from find a guarantor.
THe new job I cannot start as i cannot cancel the old visa in order for me to process the new one as the Immigration have kept hold of my passport untill they get a release letter from the bank..
Did you experience any of this??
Do you have any advise??
Thanks
Hello Expat,
I am really sorry to hear about the problems that you are facing. I haven't had any dealings with UNB so am not sure what advice to give you.
I also have not had any dealings with the Police as yet - some of my security cheques have been presented and have been returned but, so far, the banks have been very lenient with me and have given me time to try and sort out my debt.
I would strongly suggest that before you go to the Police station, you go and speak to the bank. Maybe try speaking to somebody higher up and see if they can't help you. I know that they can't close the police case without issuing a release letter. Also, maybe you should follow up with the Central Bank as well.
I'm sorry that I can't offer you more advice but I do wish you the very best of luck and hope that you are able to resolve this issue.
Take care and please let me know how it turns out.
According to an article in The Gulf News - The UAE Central Bank has held that banks operating in the UAE have no right to seize the money of their clients unless they had defaulted on payment of three successive loan instalments. The regulator urged those subjected to freezing of their funds by banks for unjustifiable reasons to file complaints with it.
The statement came in reaction to a complaint by an expatriate who was dismissed from his job at a local department and found that his account had been frozen by his bank. Requesting anonymity, the aggrieved person called on the Central Bank to look into the measures initiated by the bank and to revise them for the general benefit of depositors.
Hello,
Glad to have stumbled across your entry. I hope this finds you well.
I am in a similar situation, but perhaps because I am Southeast Asian, I had a smaller salary to start with so of course, my credit limit's smaller compared to yours.
I am still employed in the same job I got six years ago. My loan payments are regular because I chose the auto debit option. It's my credit cards that I have big problems in getting settled.
My salary is Dh6,000 - which should be at about Dh9,000 now at least, had it not been for the fact that we didn't get a salary increase for three years. I work my ass off, I have been working at a job with more responsibilities, and my manager has tried speaking to her boss on my behalf, but the only response she got is that there's no budget for a promotion as yet. In the same company, I have seen unqualified people getting higher paying posts simply because of their connections. I have written to our HR Manager who can't even frame a proper answer to my letter. In short, there is no one in the company I can rely on for any kind of help. I have applied for vacancies that came up in my company where I definitely was qulified, but then I fnd out the email route was just a formality and that some people in the department already had their "own people" lined up for the job.
I have not seen my kids for almost four years now. I am a single mom. My son is a teenager and I have been having difficulties dealing with problems back home because of my financial liabilities. My dad has tried to help me but it feels awful since my grandma has been terminally ill and he has to help out too, and he's had a heart bypass and another surgery recently... all done with him struggling on his own, and no help from me. My brother has three kids of his own, and it's not like he has extra money all the time to help me out when I become desperately in need.
Been on my toes about bank calls - phone and personal visits - for some years now. Half my salary goes to the bank where I have a loan, and I am left with a little for my bed space payment, food, payment to a loan shark I owe Dh4000 to (I've paid him 3x the amount in monthly interest - 15% per month), and money for my kids' needs... so there's basically been nothing for my credit cards (all inactive for the past 4 years). I have six of them and I found out there are already two police cases filed against me.
Someone borrowed Dh32,000 from me five years ago, in the course of eight months. I have not been able to collect a single dirham and I have given up on ever collecting. In my first year here, we used to receive good commission payouts as part of the backoffice support for sales. Those days are long gone.
I fear I have ruined, not just my life, but my children's too.
I am doing freelance work and although it's not much and irregular, it helped me survive. There were months before when my salary would just come at Dh1,200 directly from the bank... how I managed - I cannot say, but I am still here.
My visa expires in November, and only God knows what will happen after that. y employer would keep me, but I am worried about how those poice cases will affect my employment.
And thay sad thing is, a really great job with good pay is waiting for me back home. They're willing to wait till the end of the year... but I fear I may not yet be able to go home by then. I am worried about my children too, and want to be with them, be the mother I should be.
I could have taken one road, and got myself a rich or at least, a gullible boyfriend to pay off my debts the way some people I know have done, but I haven't, can't, won't do it. My foolish pride. I had a Welsh boyfriend earning Dh60,000 a month, but I hid my problems from him. When I couldn't take it anymore - he'd "waste" money on nights out and dining out (not his fault, he didn't know), and I could not do it anymore - pretend to be alright when everything inside me was falling apart. I broke up with him over a year ago. I still love him and he reconnects every once in a while, but I would rather stay away and sort out my life. My foolish pride again.
I feel for you. I hope you have spoken to your husband and that he has been understanding about it. Maybe you are already gainfully employed? I sure hope so.
Take care and keep the faith.
Good evening. I left dubai in 2009 with 320,000 owed I'm fom the uk. My father was sick may company would not let me leave so I left everything and came home. My father passed away so was happy.
Now I started to get the calls and mail but did my research and will not let them abuse me they are bad. I'm paying monthly what I can at least but they are bad don't let them hurt you
It's so touching to read the comments of people coming forward willing to share their stories and support. I do hope that all of you have found positive and productive ways to move forward and work to solve your debt problems. As a new graduate with £20,000 in tuition fees and loan debt, I know that there are steps I MUST start taking towards paying off my owings now before things get on top of me.
Thanks to all of you for sharing your stories.
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