In most of the cases when you own one or more credit cards in UAE, there are 50% chances you can repay what you have taken. The companies overburden you with debt and you get really cranky. It eventually affects your professional as well as personal relationships. There are many credit card companies that look like they are literally working to give you a bad credit history. There are few companies like Mawarid, which are legit.
However, how can keeping credit cards can get you in trouble? Well, half the blame goes to the credit card companies and half the blame goes to these factors mentioned below:
1. You can get credit cards very easily in UAE
The whole banking system of UAE features a credit process that is really easy to get access to. This is why people end up borrowing lots and lots and money and end up in debt. The interest rates of the banks in UAE are pretty low. They literally lure you to borrow money indirectly. However, once you are unable to pay it back, you are bombarded with heavy penalties that make your life more miserable.
2. High living cost
UAE is a pretty expensive place to live and no one can deny that. People living there have no other option but to live a lavish life. So, the expenses put you in a difficult situation too. The car loans are very easy there and people prefer buying them by borrowing their credit money. What people living in UAE do is that in order to pay their financial liabilities, they use official bonuses. This is what they can do at max. Also, people come here to earn more money but most of them end up going back because no matter how much they earn, it is never enough.
3. Increasing prices of properties
The property prices have taken toll in the UAE recently. This results in quick construction and more demand for properties. Yes, the companies that give you credit cards also provide property loans through that to make your survival easier apparently but harder actually.
4. No Financial Literacy
People in UAE lack knowledge about personal finance. There are many tips through which you can maintain your personal finance and hence stay out of debt. However, there are so many low-level works in UAE who don’t know how to manage their budget. Improvement starts from your own self and this is what you should know about thoroughly.
So, it is rather difficult to avoid being penalized if you own credit cards. However, you can make a habit of not borrowing a lot of money and cut out unnecessary expenses. Just make a plan and work on it throughout the year. Also, try to save as much as you can so that you can survive in the difficult country of UAE.