Living Your Life Tips to pay off debt faster

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Managing debt near retirement can be challenging, but with the right strategies, it becomes more manageable. Here is some practical guidance on reducing debt, especially for debt consolidation options in the UAE.

Tips to pay off debt

  • Know your debt: Compile a list of all your debts and prioritise them by interest rate, focusing on the one with the highest rate first
  • Budget wisely: Make a monthly budget and set aside a specific amount solely for debt repayment
  • Extra payments: Use any extra income to make additional payments as even a small extra payment can make a difference over time
  • Debt Consolidation
    • Debt Consolidation Loans allow you to combine various types of debt into one with more favourable terms
    • Balance Transfer on Credit Cards offer low introductory interest rates for transferring balances from other cards
  • Talk to your bank: Some banks offer flexible payment options so talk to your bank and negotiate a new payment plan

What you need to know about debt consolidation

Debt consolidation involves taking out a new loan to pay off multiple debts, allowing you to pay off debt more quickly.

Consider these benefits:

  • Instead of juggling multiple payments, you only have one monthly payment.
  • You can often choose a loan term that fits your budget, making repayment more manageable.

An outstanding of AED 20,000 on a credit card with a high annual interest rate of 42% interest rate. Only paying the minimum keeps you in debt longer, costing you more. Adding AED 500 monthly can help clear the debt faster, saving thousands in interest. To get out of debt, you should consider planning ahead, being disciplined and exploring options like debt consolidation. The UAE offers various products and solutions to help you do that.

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Did you know?Automating payments through Direct Debit instruction

Direct Debits are a way to pay regular bills from your current or savings account. You can set up a direct debit by signing a Direct Debit Mandate form, by going into your respective bank branch or calling your bank. Money is then taken from your bank account automatically by the company you are paying, according to your instructions.

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Knowledge quiz Why is it important to pay credit on time?


Tags: Nearing retirement Articles Debt management Banking knowledge Debts & Loans Digital products & services Consolidating debt Paying off debt faster Debt solutions