I took out a four-year loan of Dh230,000 in 2016 when my salary as an accountant was Dh13,500. The repayments were Dh5,996 a month. Then in 2017 my salary was reduced to Dh8,500, so I asked the bank to reduce the monthly payment but they refused. I raised a complaint with the Central Bank of the UAE and my bank then reduced the payment to Dh3,230 in May 2018. However, it extended the new loan period to six years, meaning the debt won't be paid off until 2024.
I now owe Dh160,000 and my salary has gone up a little to Dh9,500. I also have extra sources of income from online jobs and a friend is willing to help me settle by giving me money over a one-year period. Will the bank agree to stop charging interest, so that I can pay off the outstanding balance of Dh160,000 in a year? I also have a credit card with an outstanding balance of Dh50,000 on which I will pay Dh2,483 a month for the next two years. I borrowed all of this money for my mother's medical expenses and to renovate her house. I am from India and live in Dubai, with monthly lifestyle expenses of Dh3,500. I want to free myself of debt and make full use of my salary. Owing money is stressful and leads to health issues. SP, Dubai
Debt Panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
You took the right decision to ask the bank to change the structure of your loan once your salary decreased in 2017. However, at the moment, you should be more concerned by your card debt than your loan. You will be paying a significantly higher rate on your card and you should aim to clear the Dh50,000 you owe before focusing on paying off the loan. I appreciate your unfortunate situation, but cards are not designed to be used as a long-term borrowing tool, such as for paying medical bills or house renovations. They should be for smaller, everyday purchases and, if possible, the outstanding balance settled each month. If you want to become debt free quickly, the focus should be to repay your card first.
I can’t see why the bank would stop charging on your personal loan. You have agreed and signed to these terms when you borrowed from the bank. There is no reason why you should receive a special exemption over anyone else with a loan. Once you have paid off your card, and if you want to reduce the balance on your loan in a hurry, you can aim to make substantial repayments of more than the monthly minimum. While you should save some money each month to manage a potential change in your personal circumstances, you can still direct a large portion of your earnings towards paying off the outstanding balance. This can ultimately save you money in the long term as it will reduce the time frame the bank is charging you for holding the loan.
___________
Read more:
The Debt Panel: American absconder wants to pay off his liabilities with assets he left behind
The Debt Panel: 'What's the best way to repay my loan after I leave Dubai?'
The Debt Panel: 'Can my UAE bank file a case against me in India?'
How The Debt Panel changed lives in the UAE in 2018
The Debt Panel: Dubai couple want to consolidate their Dh285,000 liabilities into one payment
__________
Debt panellist 2: Ambareen Musa, founder and chief executive of Souqalmal.com
It's highly unlikely the bank will waive interest and allow you to pay off the outstanding balance over a one-year period. Here's why: the idea of a bank restructuring your loan (a second time) and waiving all of the interest in lieu of receiving monthly installments over one year, sounds next to impossible. At most, the bank may be willing to consider a partial waiver of interest if you offer to put down a lump-sum payment towards the loan. Because gathering funds for a lump-sum payment right away isn't possible in your case, you should consider other options.
In fact, if you want to get rid of your loan within a year, there's an easier way of doing so that does not involve negotiating with your lender. Simply save up as much as you can over the coming months and once you've accumulated enough funds to repay the outstanding loan balance in its entirety, opt for an early settlement.
However, there's another aspect you need to consider more carefully. You also owe a significant amount of money on your credit card. And since the interest rate on your credit card is definitely going to be much higher that the interest rate on your loan, you should prioritise settling the card debt. You can use your savings and the financial assistance you're going to receive from your friend to repay the credit card balance first. Alternatively, approach the card provider to restructure your credit card debt into a fixed-interest fixed-tenure loan. At the very least, this will stop the unnecessary accumulation of hefty interest. You can then compare the costs of both debts and work towards settling them one by one.
___________
Read more:
UAE residents can now buy credit reports via a mobile app
UAE credit reports to include rent, salaries and court rulings
Bank customers must submit their Emirates ID or face suspension
Start-up will help UAE residents borrow money they can afford to repay
A nine-step guide to help you renegotiate bank debts in the UAE
__________
Debt panellist 3: Rasheda Khatun Khan, a wealth and wellness planner and founder of Design Your Life
Resolving your debt problems will bring you great relief. Well done for having a strong mental outlook to do this. It is so easy to fall down the spiral of being a victim and disregard any solutions that can sort out the problem.
Before you commit to rescheduling your loan with your friend over 12 months, be sure that this process is completely affordable. It's one thing to relieve yourself of debt as quickly as possible and another to completely overburden yourself with payments you cannot manage. Also consider the impact on your friendship if you are unable to stick to your commitment agreed with your friend.
As far as repaying the banks, start with the smallest amount, so target your credit card first. You are paying a much higher rate of interest on your credit card than on your personal loan. Repay in full and then move on to the loan. If you have a lump sum ready to go, ask the bank for a full settlement figure. Many banks are willing to provide a discount if you settle in full.
For your personal loan, the bank will not stop charging you interest. But, if you repay early, you will save on the interest due over the six-year tenure. Note, the banks will charge an early settlement fee for repaying before the tenure has ended.
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
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
THE%20SWIMMERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESally%20El-Hosaini%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ENathalie%20Issa%2C%20Manal%20Issa%2C%20Ahmed%20Malek%20and%20Ali%20Suliman%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
heading
Iran has sent five planeloads of food to Qatar, which is suffering shortages amid a regional blockade.
A number of nations, including Iran's major rival Saudi Arabia, last week cut ties with Qatar, accusing it of funding terrorism, charges it denies.
The land border with Saudi Arabia, through which 40% of Qatar's food comes, has been closed.
Meanwhile, mediators Kuwait said that Qatar was ready to listen to the "qualms" of its neighbours.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Specs
Engine: 2-litre
Transmission: Eight-speed automatic
Power: 255hp
Torque: 273Nm
Price: Dh240,000
