Credit Card 2: Dh22,000 Credit Card 3: Dh22,890 Credit Card 4: Dh11,000 Loan: Dh54,280 (case filed by the bank) Rent case: Dh24,000 Different People: Dh50,000 Total: Dh235,170My husband and I are still looking for jobs. My family in the Philippines are also in debt as they borrowed to help us. I have been doing a few part-time jobs while I try to secure work, such as casual waitressing and cleaning houses. I am 29 and our expenses are Dh1,500 for rent, Dh500 for groceries and Dh200 for transport. It wasn't my intention to run away and when I came back to fix everything I lost my job. How do I solve this?CC, Abu Dhabi Having this level of debt, legal cases and being in the UAE without an income means there are serious problems. While I appreciate you wanted to be generous to your family, perhaps even show off your good fortune, it is never wise to run up debt to fund a lifestyle or impress people. As there are cases against you, I doubt you will be able to leave the Emirates now, however, it appears the debts are all in your name and not your husband’s. If he is able to travel, it may be best to have your child looked after by your family so that you and your husband can concentrate on finding employment and earning money to repay your liabilities. Is your family aware of the debts against you and how they accrued? Can no one step up to keep you out of prison? Jail time is a real possibility when there are cases against a person and they do not make any repayments. A new federal insolvency law set to come into effect in January is very timely for you. The new ruling is designed to protect people from prosecution and decriminalises debt and will offer a way to work with a court-appointed expert to find a workable solution for debt repayment. You will then have three years to pay off your liabilities. The new law means there should be no issue in visas being cancelled and so will allow individuals to take on a new role with an income that can be used to service the debt. If you have no job and therefore no income, the other option is be declared insolvent and the court will look to liquidate any assets you have to ensure you repay your creditors. This is a very sticky financial situation. There's unpaid debt, overdue rent, legal claims … and to make things worse, no stable source of income. You mention your previous employer is holding your maternity pay and end of service benefits, until your visa is cancelled. Can you negotiate with them to release your maternity pay? The extra cash can help partially repay the landlord who's filed legal charges against you and meet the other legal claims. The sooner you clear all the legal charges, the sooner your visa can be cancelled and your final salary and benefits credited to your account. Once you land a stable job, it would be a good idea to seek a debt consolidation facility. Right now the banks won't agree to consolidating your debts because you don't have a fixed source of income. Alternatively, consider enlisting external help. One option is to approach debt management agencies in the UAE. You can access their credit counselling services to come up with a plan of action. These agencies may be better positioned to negotiate with your lenders, however, these services come at a fee. Another option is to get pro-bono legal help. The Philippine Consulate in Dubai and the Philippine Embassy in Abu Dhabi run free legal aid clinics every month, where lawyers offer free counselling for Filipino expats on various legal issues in the UAE, including debt management. Visit them for a consultation armed with all the documents pertaining to your debts and legal charges. With the UAE's new financial insolvency law set to come into effect in January, you can also ask the lawyers how to access this legal route or you can approach the courts yourself to start the process. You must realise what got you into this financial trouble in the first place: your generosity and willingness to sacrifice your own financial stability to please your extended family. It would be worth having a chat with the people you helped out earlier, to return the favour. It's time to seek legal advice. Many law firms offer pro bono work especially for debt cases. They will be able to liaise with the creditors and help you negotiate a payment plan. At the same time approach the banks and request options and a payment plan. It is better to explain your circumstances than to ignore communication. You and your husband must focus on finding work. During this process clear your mind of your financial stress by putting it aside; this will help you look and research objectively. List your skills and achievements — this clarity will give you more confidence selling yourself to potential employers. Finding a job and restructuring your debt into affordable monthly repayments is half the battle. The other half is changing your spending behaviour. Spending money you don't have on yourself or others, even for good causes, will always catch up with you. Planning your finances and budgeting for what you can and want to buy helps you keep track and spend wisely. A key indicator of spending beyond your affordability is when your credit card balance starts to increase. Credit cards are best used when the full balance can be repaid at the end of every month. The moment you only repay the minimum balance or part of what you owe, interest is charged in the region of 35-40 per cent per annum. This is then added to the outstanding balance and the cycle of debt on your credit card begins. Learning to budget and becoming a conscious spender is a key part of your solution. The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae","publisher":{"@type":"Organization","name":"The National","url":"https://www.thenationalnews.com","logo":{"@type":"ImageObject","url":"https://www.thenationalnews.com/pf/resources/images/logo_rectangle.png?d=279"}},"articleSection":"Money","keywords":["Philippine Consulate in Dubai","Abu Dhabi","workable solution","Philippines","financial insolvency law","United Kingdom","Personal Finance","Philippine Embassy in Abu Dhabi","law firms","insolvency law","debt","Holborn","Rasheda Khatun Khan","Ambareen Musa","Business","federal insolvency law","bank","United Arab Emirates","Dubai","Keren Bobker","Souqalmal.com","Article"],"description":"The Filipina, who recently had her first baby, does not have a job or the means to pay back her debts","thumbnailUrl":"https://thenational-the-national-prod.cdn.arcpublishing.com/resizer/UQKWA959c2wBI5LZUjGEaQjNPkE=/400x267/filters:format(jpg):quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/thenational/GSDPBXFENE4JJESLHV2O5BEQV4.jpg","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.thenationalnews.com/business/money/the-debt-panel-i-have-four-cases-against-me-for-my-dh235-000-liabilities-what-do-i-do-1.939702"}}