Well the reality is not good, you don't have to look too far to see that there are far too many peopl ein Dubai who are living with a huge amount of debt.
It was very interesting to hear how people fall back into the debt trap. This is a caller coming home from the Bank in more debt!
And there is the person who made it work debt free and is now going down that path, and he knows better!
There is the suggestion being made that maybe the whole system is stacked against us actually staying debt free. 1st we have the person in the industry joining us. And here is a guy gaming the system!
Need a bit more reading here are the notes!
At the peak of the downturn in 2009, many expatriates found themselves saddled with financial liabilities resulting from hefty EMI (Equated Monthly Instalment) they had to part with to pay for fancy acquisitions like fancy cars, jewellery, foreign trips, etc, through personal loans and mountainous credit card bills. Bankers estimate that nearly 2,500 such debtors fled overnight from Dubai alone and there were several luxury cars abandoned in parking lots by these fleers.
Personal loans might seem like a quick way to pay for anything from university education, to vacations or even medical treatments. But beware: you can become trapped in debt if you borrow more than you can afford.
“In the UAE, people tend to use a personal loan to cover expenses, [buy luxury goods that they can’t afford] or to pay their debts,” said Preeti Bhambri, managing director and founder of Moneycamel.com. “But, loans should be taken to build assets or for emergencies.”