Mr.Jonathan’s Debt and Debt Consolidation
People who are burdened with multiple debts often wonder if debt consolidation is the right financial strategy for them to become debt-free. Many individuals fail to see the benefits offered by this strategy and continue to struggle to make payments on time, or even miss payments altogether. Let us assume, Mr. Jonathan, a British national in Dubai who successfully cleared all his debts by using the debt consolidation option. Let us listen to what he has to say about his experience.
Multiple Debts – Credit Cards and Personal Loans
I came to the UAE about a decade ago and was employed in a multinational company. My job was a very challenging one and I was paid well as I was handling one of the prestigious projects of the company. I was young and a little careless when it came to handling money. I was thrilled when I was offered my first credit card, and along the way, I got two more credit cards. Banks were too happy to provide me cards because the organization I worked for was a listed company. I took a couple of personal loans as well during this time to achieve some of my goals in life at a young age.
High Interest Payments
Suddenly, my financial planning went awry and I was struggling to make the monthly payments by the due dates. I had to keep track of multiple payment dates. Moreover, I had to ensure that there was sufficient balance in my bank account to clear the payments. Once or twice when I was forced to miss my payments, collection agents called me to remind me that I should avoid such lapses. I decided to take stock of my financial situation and was alarmed to find out that my interest payments were very high.
Another matter of great discomfort for me was that I had to go to several places to make my payments every month. This is because I was dealing with multiple lenders. One thing I can tell you for sure is that it is not a comfortable situation. I was experiencing a lot of stress, especially because I had to take time off from my hectic work schedule for the purpose of making the payments on time. I started to get the feeling that things were going out of my control.
Debt Consolidation Loan
It was then that I came across the concept of debt consolidation and started investigating this option a little more. I realized that the debt consolidation loan is an unsecured personal loan and I could use the proceeds to clear all my existing debts. Furthermore, I understood that there would be just one lender to deal with and one payment to focus on every month. This meant that I would be in better control of my finances and life. Over the last few years, I have been able to cut down my debt by more than 50 percent. I am now able to lead a stress-free life and hoping to eliminate the liabilities in my life.
Note: CompareGULF is an online market research consultant, our experts would support you in choosing right financial choice and also loan products from the market. This blog should be used only for knowledge and information purposes. Consult with bankers before signing any agreement.