Drowning in Debt? – There is Hope – Part 2

Like I said in my previous post, before I reached the point where I will not be able to pay my debt dues I went to the bank and told them my situation before things get any more out of hand. 



The first thing I did was call their collection department and explained my situation. They asked me if I had already defaulted in my payments. It was a good thing that I have not defaulted yet, as they would not have been able to help me if there was already a record of default in my account.

I was asked a couple of questions like:

  • How much do you make in a month?
  • Do you have any liabilities with any other bank?
  • How much money do you sent back home?
  • Do you have any property back home?
  • Do you have any liabilities with other persons other than financial institutions?

I listed down all my expenses. The bank also asked for supporting documents such as salary certificate, remittance slips, pay slips, receipts, other credit card bills, etc. After gathering all the required paperwork, I was asked to visit the branch.

The bank calculated how much is the consolidated liabilities and how much I should be able to pay as monthly installment based on the expenses list I provided. I was told that the bank will have to inform the UAE Central Bank and I will also be blacklisted from all their branches worldwide. I will not be allowed to apply for another credit facility from another bank. So it means no more credit card from other banks, no more loans (not even car loan). 

I agreed to the new terms and started my 4 year journey to paying off my debt.


Make sure you have enough cheque books. Enough to last for 5 or more years if your tenancy is in your name because you will not be able to request for any cheque books after debt consolidation. Ensure the money that you need for your expenses and other payable are withdrawn from your account before you approach the bank for liabilities restructuring.

Your credit cards and overdraft facility will automatically be withdrawn. Any remaining balance you have in your account will be deducted from the consolidated loan amount. 

It was quite difficult because I had to use “S” credit card when booking hotels and transportation when I go on business trips.

But after the restructuring, we were able to cope up with paying our utilities. We were able to enjoy life a little bit. After four years of repayment. I am glad to say that I am now DEBT FREE.  

There were some steps that I had to do after the loan was fully paid. That would be for “A”nother story.


This is the second part of the Debt Series. You can read about Part 1 here.

The “A” in A, B & Me. An opinionated Tech enthusiast who likes movies and TV, cooking (and eating!) good food, and traveling. I write about the Tech stuff.

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