Debt Consolidation Loans in Dubai: Combining Multiple Debts

Debt Consolidation Loans in Dubai

Dubai’s population consists of nationals as well as expatriates. Every expat come to this city in search of new job opportunity for the living of a good life. But at that time, individuals prefer to avail of different loans to fulfill their different financial needs. The paying of numerous payments of different loans every month is costly. Therefore, the Debt Consolidation Loans in Dubai are available for solving the financial stress of the borrowers. If you do not pay the monthly installments, the lender will file a case against you. That’s why the option of debt consolidation is the ideal to save yourself from facing this situation. The new debt consolidation loan comes with a lower monthly installment that is convenient for you to repay. 

What is Debt Consolidation Loans in Dubai? 

The procedure of debt consolidation is not complicated because it helps in reducing your financial burden of repayments. Many people have many misconceptions about this debt, so first of all, you have to know what exactly it is. The expats and nationals choose any kind of loan when they face financial issues in their lives. Sometimes, individuals take loans to pay utility bills, educational fees, purchasing of property, etc. All lenders offer every loan in Dubai to eligible applicants. Karz provides the best services of debt consolidation to all clients when they are in a situation of financial pressure.  

Debt consolidation is an impressive method to combine multiple debts into new ones. The process of merging of numerous loans is easily done when you provide all the required documents. This new debt program for loan consolidation is an ideal choice to deal with debts with higher interest rates. Further, the borrowers get the opportunity to pay lower payments per month. During your financial instability, loan consolidation decreases the burden of finances. Paying one payment per month will also save you money as compared to paying numerous payments simultaneously.     

Categories of loan consolidate: 

The settling of various debts through the option of loan consolidation is in two different categories. These categories are to ensure that all borrowers will get peace of mind in handling their debts. The options that you will access when you apply for the consolidation of debts are:  

  • Avail a new loan that will combine all the existing debts 
  • Choose a management program for the settling of debts 

The process of both of these categories is the same in the initial phase. The monthly payments will reduce due to a reduction in the rates of interest. In general, lenders allow borrowers to make affordable payments within their financial budget. 

Why debt consolidation is a right choice for borrowers? 

It is an effective procedure to help borrowers who are struggling hard for monthly payments. The following are the reasons that show this loan is an ideal choice for every borrower in managing their debt repayments. Look at these reasons for the worthy step of choosing a debt consolidation: 

  • You can change the tenure of the debt according to your financial life. Everyone can choose as per their requirements. A longer tenure is excellent for lower monthly repayments. However, the overall cost of its interest is a little higher than shorter repayment tenure. On the other hand, the short tenure is with higher monthly installments and its overall interest is lower. Only decide this option when your source of income is steady and higher.   
  • The loan consolidation is an exceptional way to apply for a loan with lower monthly interest. When you pay the payments of numerous debts in one month, the collective finance of all payments is higher. However, the availing of a new loan comes with the option of getting higher funds with lower interest. Compare different lenders to know about their rates for the consolidation of loans. Karz’s interest rate is lower and even they do not charge any processing fee. That’s the reason for the low debt cost of this financial company.  
  • The benefit of loan consolidation is to increase your credit score. The score will easily increase when the payments are lower and you will be able to constantly pay without any delays or missing. It means that there will be no chance of a negative impact on your credit score.  
  • The reduction of financial stress gives your mental peace. And, when you spend less on monthly installments, you will save more money which will give you benefits in the future for any emergency situation. 

Required documentation for eligibility  

The eligibility factors include the attaching of required documentation to the loan application. Without providing these documents, you will not be eligible to consolidate your all debts. Such documents are different from one lender to another, but the common requirements are:     

  • Passport and Visa (both documents must be valid) 
  • Your valid Emirates ID (original & copy) 
  • You need to give clarity about your monthly income that shows you are earning good income every month and you can repay the debt without financial difficulty. To prove it, the required document is a certificate of salary transfer. Every lender has their criterion of minimum income level. And, to gain approval, your monthly income must be higher than their criterion. The low-income applicants also get the loans but at higher rates. 
  • On the demand of lenders, you may be required to provide the recent bank statements of the previous 3 months. Another alternative to a bank statement is to attach the salary slips with the application form.