spacer
 
Through years of experience at the very highest level of international finance, I have compiled an invaluable resource of tools that can teach you to save millions and become a master of money.

Too many Emiratis Fall into “Bad Debt”

 

In the National newspaper, Baizat founder Salah Al Halyan has reacted to popular opinion citing that debt alone is not the fundamental issue in the UAE. He stated that what has become a cultural problem is 'deadly debt'. Responsible, individuals, Governments and businessmen take debts, but the 'deadly debt' is when the borrower has no assets and investments at all.

He outlined that too many Emiratis have bad debts that are never cleared and not taken in order to gain assets, such as mortgages. The lure of these dangerous debts come from the new modern culture in the UAE , particularly the spread of consumerism.

While Consultant Salah admitted that debt is a global problem, the particular issue in the UAE is that the debt-to-salary ratio is way too high. The acceptable ratio for loan payment is 35 per cent, whereas it is common in the country to see someone take a loan with a payment equal to 70 per cent of his wage. For sustainability, the bearable debt should not be more than 35 per cent of your income.

For the full article on the National website, click here