What can you do if you lost your job and still have outstanding loan and credit card balance to pay?

Dear Questioner,

Thank you for your message.

If your friend lost his job but still has outstanding loans and credit card balances, here are the steps he should take:

Contact the Banks Immediately

– Inform them about the job loss and request a payment deferral or restructuring of the loans. Many banks offer temporary solutions in such cases.

Avoid Missing Payments Without Notice

– If he misses payments without informing the bank, it may lead to legal action, travel ban, or cheque bounce cases.

Search for a New Job During the Grace Period

– After visa cancellation, there is usually a 30-60 day grace period to find a new job and avoid issues with residency and financial obligations.

Consider Legal Protection Options

– If things become difficult, he may consider filing for civil settlement or request court-approved payment plans to avoid criminal cases.

I’d be happy to assist him if he needs help contacting the bank or exploring legal options to manage the debt.

Best regards,

Mohammed Salah

Legal Consultant

Under UAE law, if someone loses their job and is unable to pay off loans or outstanding credit card balances, it is advisable to immediately approach the banks to request a restructuring or deferment of payments.

Ignoring the issue may lead to legal consequences, including bounced cheque cases or potential travel bans.

Our legal center specializes in financial and debt-related matters and can assist in negotiating with banks on your behalf.

For more details and legal support, feel free to contact us via WhatsApp.

Dear Client,

I understand your concern regarding your current financial obligations following the loss of your job in the UAE. Here are some important steps you should consider taking immediately:

1. Contact Your Banks:

Notify your banks about your employment situation as soon as possible. Most banks in the UAE have dedicated teams to assist clients facing financial hardship and may offer options such as restructuring your loan, extending the repayment period, or providing a temporary payment holiday.

2. Negotiate a Payment Plan:

Discuss the possibility of setting up an affordable payment plan based on your current financial situation. Open communication can help you avoid penalties, legal action, or a negative impact on your credit history.

3. Check Involuntary Loss of Employment (ILOE) Insurance:

If you are enrolled in the UAE’s ILOE insurance scheme, you may be eligible to claim up to 60% of your average basic salary for three months. Please review your eligibility and file a claim if applicable.

4. Review Your Finances and Prioritize Payments:

Assess your available funds and prioritize essential expenses. Try to make at least the minimum payments on your debts to avoid additional charges.

5. Seek Professional Advice:

If you are unable to reach a satisfactory arrangement with your banks, consider consulting a financial advisor or a debt management service for further guidance.

important:

It is crucial to address the situation proactively. Ignoring outstanding debts can result in legal action, travel bans, or account freezes in the UAE.

If you need further assistance or support in communicating with your banks, please let me know.

Wishing you the best during this challenging time.

Kind regards,