Know about Credit Card Debt Settlement in the UAE

23Nov, 23

Know about Credit Card Debt Settlement in the UAE

Witnessing the UAE's transformation from a small country to a thriving modern-day business centre that is home to almost every multinational firm and organisation from around the world in the Middle East is very impressive. People began moving to the UAE in search of better remuneration as infrastructure, work opportunities, and quality of life improved.

As a result, the UAE is home to more than 80% of expats who live, work, and contribute to the country's economic development. Several expats who have recently relocated to the UAE or who are looking for quick credit use credit cards irresponsibly, resulting in debt accumulation.

Users are unable to make timely repayments for a variety of reasons, including unstable financial conditions, work loss, and personal problems. The primary effect is that the user becomes trapped in a debt pit, as interest accrues on top of the basic sum, making repayment of the unpaid financial obligation much more difficult.

Now comes the dilemma of what to do in such a situation. What is the best strategy for preventing the consumer from falling further into debt? Credit card debt settlement is a practical and appropriate option for debtors who want to get out of debt the right way. This post will assist you in getting rid of your unpaid financial responsibility in the proper manner whether you are having trouble repaying credit card debt or may find yourself in a similar circumstance.

Understanding Credit Card Debt Settlement in UAE

Credit cards, as well as outstanding financial commitments, are two of the most widely used financial instruments in today's world. Credit card companies provide credit with the aim of making money by interest. If credit companies know the user is unable to pay the debt, they agree to settle the obligation in order to recover the original sum. Without a doubt, this will not assist them in earning money, but it will keep them from losing money.

It can be assumed that credit card debt settlement is a win-win situation for users. This method is beneficial to both the cardholder and the credit card provider/financial institution.

Options for Credit Card Debt Settlement in the United Arab Emirates

Depending on the debt, the user may resolve their unpaid financial obligations with the bank or credit card company in a variety of ways. We'll go into some of the more popular forms credit card companies and banks resolve unpaid debts with cardholders in this segment.

Payment in a Single Instalment

This is one of the credit card debt settlement options that banks readily accept. However, it is important to note that this strategy only works if the debtor has the loan sum in cash to make the payment.You can simply contact your bank or credit card company to request a lump-sum payment, after which you can negotiate the amount to be billed. This method is very useful since it allows the debtor to pay off the debt easily by making a single payment.


This is one of the most common and widely used debt settlement methods by both banks and debtors. The bank/credit card provider can agree to waive your interest, lower your overall debt, or waive the late fee in the case of an arrangement, making it easier for the debtor to make the payment. As a result, users will be able to repay their loans in instalments over a longer period of time.

Settlement of Adversity Payments

This choice could be ideal for you if you have been unable to make payments on your credit card loans due to difficulties or adversity. For example, if you are unable to make a payment due to a loss of employment, sickness, injury, or some other personal reason, you should contact your credit card company with proper proof of your situation.

Given your situation, the provider can reduce the minimum payment or waive the interest to make it easier for the debtor to pay. Since agreement methods differ from bank to bank, it is always a good idea to contact your credit card provider/bank.

How to Resolve Credit Card Debts Correctly

You must obey a flowchart and proceed in order if you are unable to repay your unpaid credit card debts and want to negotiate them. First and foremost, you must contact your provider as soon as possible and inform them of the issue. This will necessitate several sessions at various levels.

Instead of contacting the credit card company after first gathering facts and figures, do your homework first and then negotiate a settlement. Make a list of all the numerical figures, including the exact amount you owe, the interest rate, the repayment term, the total credit amount, and the interest rate.

Many debtors make the mistake of fleeing from their bank or credit card company rather than addressing them, which exacerbates rather than resolves the issue. The easiest option is to call the credit card company directly and tell them that you want to pay off your debts.

Dhanguard is the Best Banking Consultant and Business Setup Consultant in Dubai and UAE. Dhanguard provides financial services like Business Account, Business Loans, Home Loan & Investments services in Dubai and UAE.