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If you have opted for a home loan or personal loan in UAE and you lost your job then what would you prefer: to repay or to run away?
Well, few people might prefer to pack their bags and run away to their home country or to some other countries, where the cost of living is comparatively lower and they might think that UAE debt collectors can’t run after them.
However, few people might choose next level solutions such as the latest news of an expat who was from India, frightened that he would commit suicide after having a financial burden of loan in Dubai and having lost his job too. Then, the Dubai Police took an action immediately after knowing the whole scenario and the entire plan was averted.
Without any doubt, running away is very risky and even if borrowers run away, they will only find that their loan balance has only increased while they were gone due to high compound interest, collection charges, and late payment fees. In addition to this, their credit score will take a hit which will make it difficult for them to borrow a personal loan or any other type of loan in the future.
Even the worst thing is that there will get endless calls and messages from the debt collection agencies who have subsidiaries or offices throughout the world. So, it is not at all advisable to flee from your debt.
Some of the leading financial experts have given the following advice for all those people who have opted for a loan at the high personal loan interest rate or some other loan and lost their job too.
There are a few people who believe that since they are repaying for their loans, they will not need to pay the bank after losing their job. This is where they are wrong. Since the insurance will only pay the minimum due amount for a specific period of time and if the reason for termination is not involuntary on the debtor’s part so resignation will not be considered covered.
All those debtors who are terminated because of a company redundancy or closure must notify their bank/insurance provider in order to process the claim further. It is not an automatic process so the insurance company or bank wouldn’t know that you have lost your job on their own. That is why it is important to inform them.
In a Nutshell
Henceforth, we can conclude that running away from your debt is not an ideal solution at all. Of course, there are some feasible and smart ways to pay off your debts or personal loan in UAE even if you thought that there is no hope left. Paying off your debts will not only make you a responsible borrower but also make you eligible for other loans in the future in times of any financial emergency.