A lot of people have the issue of debt recovery. As the debt collection has become important, so the debt collectors have started coming into the market. The debtors are not paying the invoices to the creditors and so every day the debt increases on their behalf, making a difficult life for the creditor’s business.
The debtors have thought to take the bank loan in order to get rid of the debt. However, this seems an endless way of clearing debt. Moreover, if you plan to reduce debt by any means, you must weigh the pros and cons of your way of clearing the debt.
The debt collection agency in Dubai is done through debt collectors or debt recovery agents. The debt consolidation works with the bank, where the borrower is given a little space to gather all his debt into one loan and then pay the loan each month at a lower rate.
The monthly payments seem convenient to the borrower as it is not a burden on the borrower anymore and they can clear the debt to the lender, keeping the track record of repayment.
The debtors who can give the commitment in repayment can avail this offer because then, there are serious charges on the debt settlement in UAE if it does not happen in a legal way. The person who has an unsecured debt with high-interest on different credit cards, but he has no cash, can apply for such option.
The eligibility criteria for application is to have maximum 50 percent on a Debt Burden Ratio. Some banks in the UAE increase the limit for Emirates. In fact, you need to transfer the salary to the bank that is offering the facility of debt consolidation.
The debt consolidation is not a permanent solution. It can be expensive in the long run. However, it is better to prevent than to cure. It will give you relief for the short term, but as for the long term, you must either show the financial commitment to the bank or clear the debts without taking the bank loan.