More than a third of UAE respondents to a new survey have more than three credit cards, while half have nearly maxed out their limits and 42 percent don’t pay more than the minimum repayment each month, highlighting the growing debt problem in the country.
The research by the Compareit4me.com financial comparison website, which evaluates personal loans and credit cards in the UAE, found one in five of those surveyed admitted to making a loan repayment using a credit card.
The growing problem of loan and credit card debt was highlighted by the fact 45 percent of respondent said their monthly debt repayments were beyond their means.
Over a third (37 percent) said they held more than three credit cards and over half of these said they had already spent nearly 90 percent of their available credit.
Users are also not clearing their balance on a regular basis, with 42 percent admitting they only made the minimum payment each month and in some cases only paying the interest, meaning the main debt was not decreasing.
“The results found in the survey were a big concern. We found worrying trends with large portions of the respondents; trends which meant people were accumulating debt quicker than they could afford,” said Tom Davies, operations manager at Compareit4me.com.
“Credit can be and often is a positive thing but only when used responsibly. Anyone considering credit facilities should think carefully about the monthly repayments and the total value of the debt.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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