Debt consolidation is nothing but combining all the debts into one. Basically, this is done when there are too many loans and a high amount of interest to be paid on multiple loans. Debt consolidation is an effective solution which involves nothing but a fresh loan in order to clear the old ones.

When there are too many loans from different banks, with different interest rates this obviously leads to payment of high interest every month. When all these are cleared by debt consolidation loan there would be only one loan with comparatively less interest and helps save a lot of money after paying the monthly regular payment.

Non-payment of the monthly credit card bills on time affects the Credit Score. A debt consolidation loan will help you keep your credit score high since your monthly bills would have been paid properly on time.

Debt consolidation is definitely a good idea for people who carry multiple Credit Cards and Personal Loans. Due to so many payments in line, one would neither be able to clear these monthly bills nor make any savings. It is for them, the consolidation loan works well. It is better to pay one particular less interest than paying different interest rates at different banks. Also, it helps you save time as there’s just one payment to be made now that all loans have been consolidated into one.

There are many well-known Banks in UAE like Abu Dhabi Islamic Bank, Mashreq, First Abu Dhabi Bank that provide debt consolidation loans,

Eligibility: Every bank has its own eligibility criteria but here are a few points which are similar in all the banks

Documents required: Almost all the banks ask for the same documents like

Note that some banks may ask for more documentation if required. Make sure you talk to an official from the bank to confirm the documents needed.

Debt consolidation is a solution when you are neither able to make any savings nor pay the monthly interest rates. It won’t be a complete solution. It is strongly advised by financial experts that after getting a consolidation loan, the borrower must remain careful with their future expenses and try hard to clear the consolidation loan and not get caught within further debt. Another suggestion experts offer is that a debt consolidation loan should always be procured from Banks only, private lenders are not trustable in such cases.

                                         Debt Consolidation Loans in UAE

Ask questions and share your comments

We encourage our users to have discussion on questions they might have on financial products and help other users by sharing their insights. Kindly help us in making this site useful. We don't encourage any spam posts here. This is a public forum, so we request you to be safe by not disclosing personal information such as bank account or phone numbers etc. Please follow our posting guidelines. All the comments posted under MyMoneySouq official account are  not reviewed by the financial institutions.