Frequently Asked Questions
If you have any questions, feel free to contact us or schedule a free consultation with our team of experts.
What is Credit Counseling?
Acknowledgement of Debt is itself a victory and a path to debt elimination which begins by taking help from professional counsellors.
We possess compassion and expertise in dealing with unique cases requiring continuous support and guidance.
Debt Consolidation
- Combine multiple liabilities into a single repayment loan and increase your savings through interest rate reduction.
- Obtain benefit from reduced interest rates through consolidation of expensive past debt.
- Debt Consolidation is a one-time solution to get out of debt and not to borrow more.
Debt Consolidation Program
| Current Payments | Credit Card 1 | Credit Card 2 | Credit Card 3 | Personal Loan | Auto Loan | Total | Debt Consolidated Loan |
|---|---|---|---|---|---|---|---|
| Current Balance | 50,000 | 100,000 | 100,000 | 150,000 | 100,000 | 500,000 | 500,000 |
| Monthly Repayment | 2,500 | 5,000 | 5,000 | 4,500 | 2,000 | 19,000 | 12,000 |
| Monthly Repayment Reduction | 7,000 | ||||||
Monthly Repayment reduction from 19,000 to 12,000 thereby reducing the DBR and increasing the savings.
Frequently Asked Questions
Debt consolidation is a financial strategy that combines multiple debts into a single loan with one monthly payment. This typically results in a lower interest rate and reduced monthly payments, making debt management easier and more affordable.
Savings vary based on your current debts and interest rates. In the example above, consolidating AED 500,000 in debt reduced monthly payments from AED 19,000 to AED 12,000 – a savings of AED 7,000 per month or AED 84,000 annually.
Initially, your credit score may dip slightly due to the hard inquiry. However, over time, debt consolidation can improve your credit score by reducing your credit utilization ratio and helping you make consistent on-time payments.
You can consolidate various types of unsecured debts including credit card balances, personal loans, auto loans, medical bills, and other high-interest debts. Secured debts like mortgages typically cannot be included in standard debt consolidation programs.
The approval process typically takes 3-7 business days. Once approved, it may take an additional 1-2 weeks to pay off your existing creditors. The entire consolidation process usually completes within 2-3 weeks from application to full implementation.
Debt consolidation combines multiple debts into one loan with better terms, and you pay back the full amount. Debt settlement involves negotiating with creditors to pay less than what you owe, which can negatively impact your credit score significantly.
How long does a counselling session takes?
The discussion can be conducted over the phone or face to face and lasts about an hour. The information gathered during the session remains completely confidential. Solutions provided vary on a case to case basis as we do not apply a one size fits all approach.
What is a Restructuring Plan?
Our professional coaching and counseling sessions assist our clients to stick to a budget and come out from the shackles of debt. We approach Banks and Financial Institutions in UAE on behalf of our customers to consolidate their debts by lowering the existing rate of interest thereby reducing their monthly financial obligations. Our Debt Settlement offerings result in reduction of monthly financial burden.
How early or late is it to obtain Debt Counseling?
How long will it take for me to clear the credit cards outstanding?
The minimum payment of credit cards usually requires 10 years to clear off the card debt due to the high rate of interest as a percentage of the minimum amount. Our Debt Management program are structured to make you debt free in 3 years.
What types of debts are eligible under this program?
All unsecured high interest debts such as Credit Cards and Personal Loans.
Secured Loans like Auto Loans and Mortgage loans for Conventional and Islamic Banks.
Business and SME loans with or without collaterals.
Full and Final Settlement of Personal and Commercial liabilities through Debt Consolidation, Restructuring and loan takeover.
Will this help in improving my profile in the Credit Bureau?
The Debt Management Programs are structured in a way so as to reduce the debt burden ratio and remain within the Central Bank of UAE guidelines thereby improving the credit score.
