Debt consolidation loan to cover many debts in the UAE

Dear Questioner,

Please note that I need more details such as the outstanding debt amount and your monthly income to calculate your DBR [Debt to Burden Ratio].

There are banks which offer debt consolidation loan based upon the following conditions:

1. DBR should not exceed 50 per cent. Banks can only issue a consolidation loan if the debt burden ratio (DBR) – the percentage of your income that you are using to service the financing that you have received – is less than 50 per cent.

2. Most banks have a requirement of salary transfer.

As you are aware, the debt consolidation is when you combine all your existing financing and credit card dues into a single financing portfolio to take advantage of lower profit rates, longer tenures and smaller monthly repayments.

In this way, you can have the advantage of dealing with one institution and can keep better track of the outstanding and repayments.

Apart from the debt consolidation loan, another option is to rely on a good debt management company by paying them a service fee for settling your debts by negotiating with your creditors.

Hope the above explanation gives you proper clarification. Please feel free to contact me if you need any further assistance or information.

Thank you.

Regards,

Rajasree Ravivarma