Overseas Filipino workers (OFWs) in the UAE work hard to earn money for their families in the Philippines. However, not everyone ends up with success. For some, instead of saving money, they find themselves with a huge pile of debt, brought about by senseless spending.
The Filipino Times came across a letter of an OFW in Dubai who is looking for ways to pay her personal loans and credit card bills after the economic crises led her to receive a lower salary which left her unable to support her monthly financial obligations.
TFT got to speak with Dhiraj Bhatia, CEO of Express Debt Management Consultancy to give advice to OFWs experiencing the same problems.
Here are some pieces of advice Bhatia shared:
– Before obtaining any loans, one must understand their total liabilities and how much they have to pay on monthly basis. Before borrowing from a bank/financial institution, the pros and cons must be strictly evaluated.
– Make sure your total monthly loan and or credit card payments should not exceed more than 50 percent of your net salary per month.
– A good practice would be to stay away from credit cards as their interest charges are way higher than personal loans.
– Pay on time in order to avoid any late fees and extra charges to the account.
– Always pay off existing debts first before borrowing again.
– If you have 2 or more unpaid credit cards and loans, seek professional help and avail of debt consolidation program or a debt restructure program. Under a Debt Consolidation program, all existing liabilities are eliminated and converted into one single payment. On the other hand, a Debt Restructure program is where the existing liabilities are restructured by a financial expert who would also negotiate with creditors on behalf of debtors.
Dhiraj has one last advice to the public to help them avoid facing credit card and loan debts – take action before it’s too late.
“As soon as you feel something is not right, stop making individual efforts and seek an expert advice. A strategy has to be developed which leads them toward a debt-free life. It does not happen overnight but the sooner you start the faster you see results,” said Dhiraj.
