According to recent surveys, more than 80% of the UAE population are expats from different countries like India, America, Canada, Australia, China & Pakistan, etc. There can be multiple reasons why people want to settle in the UAE. Good career and financial growth are definitely amongst those. Low taxes compared to their home countries is an addition to the pros of staying in the UAE. Ultimately it’s a place to fulfill one’s dreams.
Every country has its pros and cons. Even though it is one of the safest and successful countries, people have their reasons to leave. For example, your work visa dictates the duration of your stay there, so once the working period is completed you may need to leave unless you find a new job that would renew your visa.
What you must do before leaving the country?
As already said, most expats come here as a working individual there can be times where they had to leave the country once the working contract is over or getting expelled. Money is a big worry when you lose your job in the UAE. The very common reason to leave the country without paying the debts is, losing the job. It can be difficult to live in the UAE without a job if you don’t have a good amount of savings that can cover you up till you get a new one. Things can get even critical if you have debts to clear. Whatever the reason behind you leave the country, you must know some “must-do” actions before you leave the country.
- Clear your traffic fines
- Give notice to your landlord if you have rented a place to live
- Before you leave the UAE, try to clear all your debts (very very important)
- If no longer needed, close the bank accounts as well
Check here: How can you get rid of debts?
Why you must pay back all your debts before you leave the UAE?
People may think once they leave the country, they can’t be chased. But this is not true. Moreover, when you check your loan amount, it will be increased continuously because of late fees, interest rates. The longer you ignore it, the bigger it will get. In fact, there will be countless calls from the lender. After a certain period, the Creditor may decide to take legal action to get your credit card bill paid. Finally, you can get arrested if you come back to the UAE for leaving the country without paying debts before.
What if you can’t pay your debts at any cost…..?
Usually, when the loan holder doesn’t pay installments for a long time the lender will call them. If they don’t respond to the calls, the bank(lender) will send the notice. If still the loan holder doesn’t respond to the bank or doesn’t clear the debt, the bank will deposit the security cheque provided by the loan holder. If the debt is not cleared with that cheque due to insufficient funds, there will be a bounced cheque cases registered where you will be supposed to pay a fine as per new laws in the UAE.
If you can’t clear your debts on time, what are the other ways to get help?
If you are in a situation where you can’t clear your debts on time and have to leave the country, you can try these options.
Savings/ Emergency Funds:
When you live in another country as an expat, it is better to keep some amount aside as an emergency fund. In the worst cases like this, you can use this amount.
Ask for help:
You can check with your friends or family for any financial help where you can pay back them once you reach your home country.
Check this out: Tips to Manage your Debts
Talk to Bank:
Leaving a country without clearing debts can put in a critical situation. Hence if you are not in a situation to clear the loan, you can approach the bank officials and explain the situation and ask for time to clear the loan. And make sure you keep your promises and obligations and pay them back from home or abroad.
Conclusion
Finally, it’s proven that always better to pay back your debts before leaving the country. So that you can peacefully leave the country and visit again.
About the author
Sameera’s interest in the finance niche and immense interest in reading has made her a personal finance writer for MyMoneySouq. She calls herself a writer by day and reader by night. She enjoys writing as much as cooking.
