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Key considerations to bear in mind before opting for a debt consolidation service

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Debt consolidation entails obtaining a fresh loan to settle various smaller debts and obligations. If there are multiple debts with varying and high-interest rates, they might severely affect your financial situation. By consolidating your debts, you can acquire a single loan at a reduced interest rate, enabling you to repay multiple accumulated debts effectively.

But, before you opt for a debt consolidation service in Dubai, consider the following.

Analyze your current debt situation

You should thoroughly evaluate your overall debt situation. If there is excessive debt, it will affect your financial well-being, credit score, and most importantly, your future.

It is crucial to carefully analyze how to navigate such situations and implement measures to prevent them from recurring. This introspection can catalyze actively managing your finances and debt.

Assess your credit score

Opting for a debt consolidation service can have an instant impact on your credit score. Given that you already carry a substantial amount of debt, incorporating another substantial debt through debt consolidation can result in a notable decline in your credit score.

As you diligently adhere to the repayment schedule for the larger loan, your credit score will gradually improve. It’s important to assess the current credit score because the interest rate for the new loan depends on it.

Consider your income

It is crucial to always bear in mind that debt consolidation, achieved through acquiring a larger loan, does not put an end to your debt challenges. The repayment of the larger loan must be fulfilled by the chosen repayment schedule. It is essential to meet all obligations as outlined in the terms of the debt agreement. Therefore, considering your present income and its stability becomes imperative.

 

You should analyze your current income to know if you can meet the monthly payment requirements. We recommend having a buffer of at least 2-3 months in your account to avoid payment defaults.

Choose the right lender

The selection of an appropriate lender can significantly impact the interest rate offered to you. It is advisable to consider reputable lenders with strong customer ratings. Inquire about the loan charges imposed by the lenders and compare them with other similar institutions.

If you intend to repay the loan ahead of schedule, ensure that the chosen lender either imposes no foreclosure charges or keeps them to a minimum. This precaution will prevent any substantial financial burden caused by excessive foreclosure fees.

Conclusion

Utilizing debt consolidation as a method to consolidate and effectively handle multiple debts owed to various lenders can be highly advantageous. However, to fully capitalize on its benefits, it is essential to execute debt consolidation correctly.

Key factors such as the total debt amount, interest rates, repayment timelines, and associated charges from lenders must be carefully taken into account. It is crucial to thoroughly comprehend all aspects of debt consolidation service before making an informed decision in Dubai.

Credit Card Debt Restructuring: What Is it and How Does It Work?

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Credit card debt can be quite scary and unpleasant if you’re struggling to make payments and keep up with interest rates. Debt restructuring is a choice that can help you manage your credit card debt and regain financial stability.

Let us help you understand what credit card debt restructuring is and how it works.

What Is Debt Restructuring?

Debt restructuring is the process of revising the terms of your loan agreement with your creditor so that you can make repayment more reasonable. This can be carried out in several ways like you can modify the loan’s interest rate, lengthen the loan’s term, or reduce the remaining balance to be paid

How Does Debt Restructuring Work?

Debt restructuring involves negotiating new terms with your creditor while working with a debt counsellor or financial advisor. Credit card debt can be restructured in a few different ways. The most typical choices are:

  • Reduced Interest Rate:

The credit card company may be willing to reduce the debt’s interest rate. This way you can manage the debt better as the overall amount of interest you must pay is lowered.

  • Extending the Payback Period:

The credit card company may be open to extending the debt’s repayment period. As a result, you may find the monthly payment more manageable.

  • Combining Numerous Debts:

If you have several credit card bills, the credit card company can be open to combining those debts into one. This can lower the overall interest rate and make the loan easier to manage.

  • Debt Settlement:

The credit card company might be ready to accept less than the whole amount remaining. If you are unable to pay the whole amount but wish to avoid bankruptcy, this may be a smart alternative.

The Benefits of Debt Restructuring

If you are someone who is struggling with credit card debt then debt restructuring can be useful for you in many ways.

  • By renegotiating the conditions of your loan agreement, you might be able to –
    • Lower your monthly payments
    • Lower your interest rate
    • Lengthen the loan term
  • You may find it simpler to manage your debt in this way and keep from missing payments.
  • You can prevent bankruptcy and its potentially damaging effects on your credit score by reorganising your debt.

Things to Keep in Mind

  • Once you and the credit card company have agreed on a debt relief plan, it is important to abide by the modified terms and make the payments accordingly.
  • Stick to the revised payment schedule and submit the necessary installments on time to avoid any more problems.
  • Failure to make the payments could result in the credit card company revoking the debt restructuring plan, putting you back in the same financial situation.

If you’re struggling with credit card debt, try debt restructuring. But remember that even with a new payment schedule, paying off the debt will take time and work. You can take help from a financial service company to make sure you do not make mistakes.

Is a Loan Buyout the Right Choice for Your Financial Situation?

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At Lin International Debt Management, we are here to help you with the best buyout loan in UAE. However, a buyout loan can either be or not be the best option for your financial condition, depending on the following factors.

Factors to Consider When Deciding If a Buyout Loan is the Bst Option for Your Financial Condition

A loan buyout can be an appealing option if you’re struggling with numerous debts and excessive interest rates. Your monthly payments will be more manageable if you combine all of your debts into one loan, and you can also save money on interest charges.

Importance of Credit Score When Applying for a Buyout Loan

Credit Score

Your credit score is a significant factor. You usually need to have a decent credit score in order to be eligible for a buyout loan with favorable terms and interest rates. You can not be qualified for the most affordable loan alternatives if your credit score is low, or you are required to put up collateral or need a cosigner to obtain the loan.

Calculating the True Cost

The total cost of the loan, including any fees or penalties for early repayment, must also be taken into consideration. While a buyout loan can save you money on interest charges, you should also consider any upfront expenditures or closing costs. Make sure you know the loan’s repayment requirements as well as any early repayment penalties.

Assessing Your Financial Health

Your goals for the future should be taken into consideration when determining whether or not a buyout loan is the best option for your financial condition. While a buyout loan will temporarily free you from high-interest debt, it won’t solve all of your money issues. If you don’t deal with the root causes of your debt, you can eventually find yourself in a similar circumstance again.

Consider the time to evaluate your total financial situation before applying for a buyout loan. The simplest way to decide if a buyout loan is the right choice for your requirements is to evaluate your income, spending, and responsibilities. To make a smart decision, consult with us as we are here to help you.

Debt-to-Income Ratio

Your debt-to-income ratio is a further consideration. Your ability to afford the monthly payments on your buyout loan is something that loan providers look at. The providers can be reluctant to approve your application or they can offer you a loan at a higher interest rate if you have a high debt-to-income ratio.

Consolidating debt and streamlining your monthly payments are both possible with the help of the best buyout loan in UAE. However, not everyone should make this decision. Consider your credit rating, debt-to-income ratio, and general financial objectives before applying.

It’s crucial to work with a trustworthy lender who provides fair terms and reasonable rates if you decide to pursue a buyout loan. You can get assistance from Lin International Debt Management for your requirements and throughout the loan application procedure. We have a track record of successfully assisting clients to attain financial stability through the provision of excellent debt management services. Please do not hesitate to get in touch with us if you need advice or assistance while you go through the buyout loan application process.

 

Know These Factors About Debt Advisory and Restructuring Firm

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In business, debt is a frequent occurrence. However, debt may be a significant source of worry when it becomes unmanageable. Firms that specialize in debt advisory and restructuring can help. These companies offer services that assist companies in managing their debt and reorganizing their finances for improved cash flow. The major advantages of dealing with a debt consulting and restructuring firm will be covered in this blog post.

  • Professional Knowledge

Finance, legal, and accounting professionals are employed by debt advisory and restructuring companies. These experts have the expertise and experience to guide firms through challenging financial conditions. They can examine a company’s financial documents, spot weak spots, and provide recommendations for improvement. Debt counselling and restructuring companies can assist businesses in making educated decisions on their debt management strategies by utilizing their professional skills.

  • Cost and Time Savings

Businesses can save time and money by collaborating with a debt consulting and restructuring company. These companies are capable of managing intricate financial procedures and agreements, freeing up business owners and managers to concentrate on managing their organizations.

  • Better Cash Flow

Businesses can increase their cash flow by working with debt advisory and restructuring companies to create plans that put paying down debt and managing cash first. Renegotiating payment terms, consolidating debt, or creating a repayment plan are a few examples of these tactics. Businesses can have more financial stability and flexibility by boosting cash flow, which allows them to invest in opportunities for growth and expansion.

  • Greater Negotiating Strength

Firms that specialize in debt advisory and restructuring have experience dealing with creditors and lenders. They are skilled negotiators who can use their familiarity with the procedure and connections to these parties to their client’s advantage. The financial condition of a business may be improved as a consequence of lower interest rates, longer payment terms, and other concessions.

  • Reduced Risk

Debt can pose a serious risk to organizations. Failure to manage debt effectively might result in insolvency, bankruptcy, or even legal action. Businesses can reduce this risk by working with debt advisory and restructuring companies, which can offer knowledgeable guidance and create risk management plans. Businesses can reduce the risk of financial trouble by managing their debt well.

  • Higher Credit Rating

When applying for funding and credit, a company’s credit rating is a key consideration. Businesses can raise their credit scores by working with debt counselling and restructuring companies to create plans that put paying off debt and managing cash flow first. Businesses can get more advantageous financing and credit arrangements and, hence, improve their overall financial situation by raising their credit ratings.

In conclusion, companies that are in debt might profit from a variety of services provided by debt counselling and restructuring companies. Businesses can take charge of their finances and strengthen their financial situation by engaging with a debt advisory and restructuring firm, which will help them expand and prosper in the long run.

How to Decide If Debt Advisory and Restructuring Is the Best Option for Your Business?

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Debt advisory and restructuring is the best option if your business has financial difficulties. In many businesses, debt is a vital component, but when it grows to an unmanageable level, it can endanger the business’s existence. 

Lin International Debt Management is a team of financial experts that can help you reduce your debt load and regain financial stability. However, it’s crucial to consider whether debt restructuring is the right option for your business before taking it on.

When determining whether debt advisory and restructuring is the best option for your business, keep the following points in mind:

  • Debt Load

First, evaluate your current debt load. You should figure out how much money you owe overall, how much interest you’re paying, and how much you’re paying each month. This will provide you with a clear picture of your financial condition and assist you in determining if your debts are sustainable or causing significant financial strain.

  •  Business Goals

Your business goals are another thing to take into consideration. Debt restructuring can decrease your debt load and increase your financial security, but it can also limit your capacity to seize development opportunities. Debt restructuring could not be the ideal choice if the growth and expansion of the business are your main priorities because it can limit your future ability to take on additional debt.

  • Cash Flow

Another crucial aspect to take into consideration when analyzing your debt situation is your cash flow. It could be challenging to make debt payments if your cash flow is constantly negative, and you may need to think about restructuring your loans. Restructuring might not be required if you can make enough money to cover your expenses and debts.

  • Credit Score

Restructuring your debt can decrease your credit score, which can make it more challenging to get funding in the future. Before selecting to restructure your debts, it’s critical to know the prospective effects on your credit. Avoid restructuring and concentrate on enhancing your cash flow if you have a good credit rating and can make your debt payments on time.

Navigating Debt Advisory and Restructuring: Weighing Costs Against Benefits for Financial Security

It is critical to look into the expenses of debt advisory and restructuring. Our services are not costly, so you must consider the possible benefits against the price. If you are unable to make your debt payments and are experiencing major financial difficulties, debt restructuring may be the best choice, even if it comes at a large cost.

Reducing your debt load and enhancing your financial security can be accomplished through debt advisory and restructuring. Before choosing if it’s the best option for your business, it’s crucial to carefully assess your position and take into account all of the relevant elements. You can decide for yourself whether debt restructuring is the best course of action for your business by analyzing the above factors. We provide you with the best debt management services to understand and reduce your loans and debt. Contact Lin International Now  info@lininternational.net

What are the Consequences of Becoming a Credit Card Defaulter?

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Credit cards are a convenient way to make purchases and manage your finances, but they come with significant responsibilities. One of the most significant risks associated with credit cards is the possibility of defaulting on your debt. Defaulting on your credit card debt can have serious consequences that can impact your finances and credit score for years to come.

In this blog, we will explore the consequences of becoming a credit card defaulter and provide tips on how to avoid this situation.

 

  • Negatively Impacts the credit score

Late or missed credit card payments can harm your credit score, which negates the primary advantage of using a credit card. To enhance your credit score, you must use your credit card effectively and pay your bills promptly. Maintaining a good credit score is essential to qualify for higher loan amounts in the future. If you fail to pay your bills on time, it can have adverse effects on your financial well-being in the long run.

 

  • Credit card account gets blocked

Failing to make credit card bill payments for up to six months will result in you being labeled a credit card defaulter, leading to blacklisting from the bank and the eventual blocking of your credit card account. This could cause considerable financial distress as you may be unable to access credit or may have to rely on other less favorable means of financing.

 

  • Leads to legal implications

When credit card bills remain unpaid for an extended period, it may suggest to banks that you are engaging in fraudulent activities. This can have serious legal consequences, as banks may pursue legal action against you to recover the unpaid amount. This can impact your financial stability and limit your ability to access credit when you need it.

 

  • High-interest rate is charged

If you fail to make credit card bill payments for more than 60 days, credit card companies may charge interest rates of up to 30% on the overdue amount. This interest rate is also applicable to new purchases made using a credit card. If this pattern persists, the interest on your credit card bill can quickly exceed the actual bill amount, leading to an increasingly precarious financial situation.

 

  • Interest is applied on outstanding balance 

Despite a common belief among credit card users, paying only the minimum amount due on your credit card bill before the due date does not exempt you from paying interest charges. In fact, interest charges are levied on the outstanding amount starting from the due date, regardless of the minimum amount paid. Therefore, it is essential to pay the full credit card bill amount to avoid incurring interest charges.

How Loan Restructuring for Credit Card can prevent you from becoming a Credit Card Defaulter?

Loan restructuring is a process where you work with your credit card issuer to change the terms of your debt to make it more manageable. It typically involves negotiating a new repayment plan that includes lower interest rates, reduced fees, and more extended repayment periods. Loan restructuring can help you avoid defaulting on your credit card debt by making it easier for you to keep up with your payments and reduce your outstanding balance over time.

When you enter into an agreement for loan restructuring for a credit card, you will likely have to agree to certain terms and conditions, such as making all of your payments on time and not using your credit card for new purchases. It’s important to read and understand these terms before agreeing to them so that you know what is expected of you

If you want to know more about credit card loan restructuring, contact Lin International Debt Management.

 

A Complete Guide to Credit Card Settlement Plans in the UAE

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Residents of the UAE who are having trouble paying off their credit card debt are increasingly turning to credit card settlement plans. These plans provide borrowers with a structured repayment alternative intended to make it simpler for them to manage their bills and eventually become debt-free.

A credit card settlement plan in the UAE is a settlement made between a borrower and a lender that enables the borrower to pay back their unpaid credit card debt in installments. The borrower must still pay back the total amount of the debt, even though the lender may waive some fees and interest charges.

These plans provide debtors with a more manageable repayment choice to assist those who are having financial difficulties making their credit card payments.

This blog will provide you with a thorough overview of credit card settlement plans in the UAE.

What is the Process of a Credit Card Settlement Plan?

Borrowers are often expected to pay a lump sum upfront when enrolling in a credit card settlement plan. Often, this payment represents a portion of the entire sum due. After making the one-time lump sum payment, the borrower will start paying the balance of the debt in regular monthly payments. Depending on the conditions of the agreement and the borrower’s financial situation, the repayment period may change.

Aspects to Consider Before Enrolling in a Credit Card Settlement Plan

The following are the aspects you should consider before enrolling in a credit card settlement plan in UAE.

  • Conditions of the agreement

Before enrolling in a credit card settlement plan, borrowers should carefully read the conditions of the agreement. This contains the timeframe for repayment, the interest rate, and any other fees set by the plan.

  • Affordability

Before agreeing to a credit card settlement plan, borrowers should be sure they can afford the monthly payments that are involved with it.

  • Effect on Credit Score

Even though credit card settlement plans have the potential to boost a borrower’s credit score over time but there may be a temporary negative effect on it.

  • Alternatives

Before enrolling in a credit card settlement plan, debtors should consider alternative possibilities such as balance transfers and debt consolidation loans.

Advantages of Credit Card Settlement Plans

The following are the main benefits of credit card settlement plans:

Reduced interest rates:

Compared to standard credit card debt, credit card settlement plans often have lower interest rates. This may enable borrowers to reduce their overall interest charges during the payback time.

Fixed Repayment Schedule:

Credit card settlement plans offer borrowers a fixed repayment schedule, which can help them better manage their debts and eventually become debt-free.

Credit Card Score Improvement

A borrower’s credit score can be raised over time by paying off credit card debt through a settlement plan.

Fee Deduction

In some circumstances, lenders may waive some fees related to credit card debt, such as late payment fees and over-limit fees.

Stress Reduction

For many people, credit card debt can be a major source of stress. Credit card settlement plans can help by giving borrowers a clear path to debt repayment, which can reduce this stress.

Conclusion

Borrowers who are struggling to pay off their credit card debts can find a credit card settlement plan in the UAE to be a valuable tool. These plans provide a structured repayment option, reduced interest rates, and the chance of fee waivers. However, before signing the agreement, borrowers should thoroughly review its conditions.

How Can You Achieve Financial Stability with Instant Debt Management Services?

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Why instant debt management services are important? For a business, debt is a common problem. It becomes challenging for a business to deal with the consequences of unpaid debts. This can only be handled with the right tools and strategies, making financial stability possible.

About Instant Debt Management Services

Simply defined, this offer a range of benefits, helping businesses struggling with debt to achieve financial stability. With services, businesses get a range of tools and resources to help them take control of their finances and become debt-free.

Typically, debt management services include debt counseling, debt consolidation, debt settlement, and debt management plans. Explaining these in detail:

  • Debt counseling- In this process, a financial counselor helps the business to understand its debt and create a plan to pay it off.
  • Debt consolidation- This process involves combining debts into a single loan with a lower interest rate.
  • Debt settlement- This process involves negotiating with creditors to reduce the amount of debt owed.
  • Debt management- This involves working with a credit counseling agency to create a budget and payment plan for debts.

How Can You Instant Debt Management Services?

To get started with instant debt management services, you need to provide information about your business debts and financial situation. The counselor and other associated experts will use these details to create a plan and help you pay off your debts and achieve financial stability.

Keep in mind that tools and resources offered by instant debt service providers can vary. Other might include budgeting tools, debt calculators, and educational resources on financial management.

Why Should You Use Instant Debt Management Services?

  • Reduced Interest Rates

With debt consolidation, you can reduce interest rates on all your business debts. Because of this, you can easily and quickly pay off your debts.

  • Lower Monthly Payments

With a debt management plan, you can reduce your monthly payments on your business debts. This will help you manage your finances easily.

  • Simplified payments 

Other than reduced interest rates, debt consolidation will help you simplify your business debt payments as it combines multiple debts into a single payment.

  • Reduced Stress

With the tools and resources provided by instant debt management services, you can manage your debts easily and properly. This will help you reduce your stress and anxiety related to business financial problems.

  • Improved Credit Score

If the business debts are paid off on time, it affects your credit score positively. As a debt-free company, you will improve your credit score. This will help you qualify for loans in the future with better terms.

Conclusion

With the help of instant debt management services, you can achieve financial stability in your business. It’s because the services provide the required tools and resources to manage debts effectively and efficiently. But, the problem is the service provider.

You shouldn’t work with anyone or everyone. Make sure you properly know the service provider before sharing your financial details.

Loan Settlement and Its Effect on Credit Score

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The meaning of a loan settlement can be explained with the help of a scenario. When a borrower has taken a loan from a lender and he/she is not able to pay the person due to ill- health or an accident, that borrower may get loan write-offs as an opportunity to pay less with the help of loan settlement services.

Write-offs or a loan settlement should be the last option. They damage the credit score.  Another option is to have a contingency plan and take a loan settlement. Lin International Debt Management in the UAE helps borrowers to get out of sticky situations such as debts as it helps in debt management and settlement.

What Exactly Is The Term Debt Settlement?

 Debt Settlement is an agreement between a lender and a borrower to pay off a lump sum amount as a one-time payment. Debt Settlement is the last resort for a lender. This is in exceptional cases. These cases occur, when a borrower cannot pay the amount. For these loan settlement services come in handy. It helps the borrower to settle debts and loans.

What Should We Do In Cases Where Debt Settlement Is The Only Option?

Debt settlement is the only option in some cases of total bankruptcy. The borrower must ask the lender to allow a 30% rebate. The debt amount may be written off to half the amount, in case of disputes between both parties. Debt settlement must be managed through a plan of debt management.

·        Sign Up For A Debt Management Plan

A debt management plan is the best plan for a borrower overburdened with a debt.  It involves consulting a credit counselor at a non- profit credit counseling agency or a debt management firm which offers loan settlement services.

·        Debt Consolidation Loan

Loan Settlement services can be sought for a debt consolidation loan. Debt Consolidation loan is an amalgamation of the total debt. Debt consolidation does not remove debt, but makes repayment simpler.

What The Borrower Must Do In Cases Of Debt Consolidation Loan Denial?

Debt consolidation loans may be difficult and in cases, the borrowers must seek help. Debt Management companies, for example: Lin International Debt Management in the UAE can upturn the ball in the borrower’s court.

Conclusion

Loans and debts are difficult to settle and that is where debt management comes into play. Without guidance, many people with burden of huge debts or loans often feel hopeless and think that there is no way out. However, there is always a way if you are willing to see it. Professional help is always there even for those who are heavily in debt and can’t see a way out. If you live in the UAE and want to settle the debt/loan, then you can consult Lin International Debt Management for loan settlement services. We can help you manage your finances and settle loans so that you can pay your loan and debt and live a worry-free life.

Different Ways to Manage your Credit Card Debt

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In past decades, people have used the cash method for transactions and it’s the only medium to use money in an efficient way; but nowadays this transaction method is being replaced by UPI ids and credit cards.

When you use a credit card for the transaction to fulfill your necessary bills, you have to pay them back later as a charge. In case, if you don’t repay the money within the allotted time, it becomes a debt.

Getting out of debt is challenging, but can be manageable with credit card settlement plan in the UAE. In this post, we have suggested various ways to manage your credit card debt. So, read till the end.

  • Use One Credit Card: Do not carry multiple cards as it would create worries. If you have credit card debt, it is better to manage your credit card payments wisely. If you own multiple cards, ask the bank to discontinue services of multiple cards and keep only one credit card for your transactions. You should wisely use the credit card. So, don’t use it unnecessarily or spend on useless things. Also, try to pay the due in the given period of time.

 

  • Take a Loan: Don’t delay the process to repay the debt; otherwise, it may get higher as time passes. To get out of this situation, you may go for a personal loan policy and pay the due bill on your credit card. Try to find the bank that will provide you with the loan at a lower interest rate. However, this path is not the best solution to get out of credit card debt.

 

  • Transfer Balance to EMIs: Most credit card provider companies offer the option to convert the pending dues into monthly installments by dividing the amount equally. It will help you to repay the due amount on your credit cards. Try to ensure that the interest rate is lower than the balance on a credit card. This can help you repay the debt completely. Also, the interest rates may vary on the period you have chosen to repay the amount by the EMI method. The interest rate will be lower if you choose a short EMI period.

 

  • Shift to Another Credit Card: You can shift your credit card balance to a different bank. They might charge you a minimal interest rate. It could be a smart way to repay credit card debt.

 

  • Pay the Bill: Try to pay the bills on a regular basis. Make a budget for your credit card and try to keep your spending within that limit. It can protect you from getting stuck in the debt cycle.

 

Lin International Debt Management can help you with all the problems you have regarding credit card debt. If you are facing problems repaying your credit card debt and looking for a Credit Card Settlement Plan in UAE, contact debt management experts right away.

Top Ways to Improve Your Credit Score to Get Debt Consolidation Loan

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When your bills are piling up and debt obligations are getting too high to bear, make a smart move and opt for a debt consolidation loan. However, there might be a little thing getting in your way of receiving debt help. Your low credit score can make you less reliable to get a debt consolidation loan.

You can improve your credit score to get the best debt consolidation loan. Further in this blog, we have listed some top tips to help you improve your credit score so that you will be able to reduce your debt burden.

Carefully Check Your Credit Report

Have your credit score made you stun? If yes then make sure it is accurate before taking any action. There are resources that allow you to check your credit score. If you notice any discrepancies, errors, or omissions, you can contact the resource you are checking the score on. Although credit scores are reliable indicators of your financial stability, they are not fail-proof. So it is vital to carefully read your reports to make sure that everything is perfect.

Don’t Pile Up Bills

When your debts are too much, piling up bills might seem like a choice however doing so will work against you. Your credit score largely depends on your payment history. So if you make late payments and take more than 30 days to make payments, this can be a red flag for any lender as they are likely to get paid on time.

Increase Your Debt-To-Credit Ratio

Another factor that creates a huge impact on your credit score is your debt-to-credit ratio. This ratio gauges how much revolving credit you are using compared to your total credit limit. It is usually expressed in percentages. So if you are used to piling up the credit card bills and just paying the minimum amount due each month, you should stop doing so. If your debt-to-credit ratio is below 30%, it makes the lenders suspicious and less likely to lend you the amount you want.

Use Credit Cards

The quickest way for you to help creditors to get your new and updated information is to avoid abandoning your credit cards altogether. You might prefer to pay cash to get discounts but smartly using credit cards can help you get a good credit score. However, just avoid making big-ticket purchases that you can’t afford.

Rejection of debt consolidation loan applications can be frustrating. However, some lenders want to help applicants trying to improve their credit scores. So if you looking for the best debt consolidation loans, improving your credit score can be your best bet.

When Is The Best Time To Restructure A Mortgage?

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Choosing the right moment to restructure a mortgage is a critical decision that can greatly impact your financial well-being. Find Mortgage Restructuring services in the UAE to learn more about restructuring your mortgage. Here are some factors to consider when determining the best time to restructure your mortgage:

  • Interest Rates

If interest rates have dropped since you obtained your mortgage, refinancing may result in a lower monthly payment and overall interest paid over the life of the loan. Consider comparing current interest rates to your current mortgage rate and determine if refinancing could lower your monthly payment.

  • Fixed-Rate Loan Expiry

It is sometimes important to restructure. For example, if your fixed-interest loan is about to expire, arranging a restructuring is in your best interests.

In most cases, doing nothing means that the loan reverts to the lender’s floating rate, which is not always the best option. Instead, this is an excellent time to assess what is available and pick something that meets your current requirements.

  • Personal Circumstances

Occasionally, the appropriate time to restructure comes from circumstances closer to home. When your circumstances change, the debt-to-income ratio can shift in either direction. You may find yourself with insufficient funds to cover your existing mortgage payments. Alternatively, the opportunity to boost them and shorten the loan time may have come, but your current mortgage does not enable you to make more payments.

In both of these cases, debt restructuring is a technique to bring your mortgage payments back into line with what you can afford as a borrower.

  • Financial Stability

Before restructuring your mortgage, consider your current financial situation. Make sure you have a stable income and a good credit score, as this will determine your eligibility for refinancing and the interest rate you receive.

  • Purpose Of Restructuring

Determine the reason why you want to restructure your mortgage. If you are looking to reduce monthly payments, consider a loan modification or refinancing to a longer loan term. If you want to pay off your mortgage faster, consider refinancing to a shorter loan term.

  • Cost Of Restructuring

Refinancing can come with closing costs, such as appraisal fees, title search fees, and processing fees. Consider these costs when determining if refinancing is worth it for your particular situation.

  • Timing

Timing is important when restructuring a mortgage. You may be able to take advantage of lower interest rates or other favorable market conditions. Monitor interest rates and other financial indicators to determine the best time to restructure your mortgage.

  • Home Value

Your home will impact your ability to restructure your mortgage. If your home value has increased since you obtained your mortgage, you may have more equity to work with and could potentially refinance to a lower interest rate or shorten the loan term.

Once you have considered these factors, it is important to do your research and look around for the best mortgage options.

In conclusion, restructuring a mortgage can have significant financial benefits, but it is important to choose the right moment and to consider all the factors involved thoroughly. Make sure you have a solid understanding of your financial situation and the costs involved before making a decision.

Find Mortgage Restructuring services in the UAE to learn more about debt management. Contact Lin International Debt Management to have your debts managed for you!

What is Debt Advisory and Restructuring?

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Are you looking to get out of debt? Or maybe you’re considering restructuring your debt in order to manage it more effectively? If so, then you need to know about debt advisory and restructuring.

In this blog, we’ll discuss what debt advisory and restructuring is and how it can help you with your debt. We’ll cover topics such as the types of services offered, and the benefits of using a debt advisor.

By the end of this post, you’ll have a better understanding of how debt advisory and restructuring can be a powerful tool for managing your debt.

Defining Debt Advisory and Restructuring

Debt advisory and restructuring is a service offered by financial professionals to help individuals or businesses that are having difficulty managing their debts.

It is also known as debt relief, debt negotiation or debt counseling. Debt advisors provide a range of services to help borrowers achieve their financial goals, such as reducing debt, consolidating payments and negotiating with creditors.

The goal of debt advisory and restructuring is to find an appropriate solution for the borrower’s current financial situation. This could include negotiating with creditors for lower interest rates, longer repayment terms, debt consolidation, debt settlement or other strategies.

By working with an experienced debt advisor, borrowers can gain insight into their options and develop a plan to reach their financial goals.

The Services Offered by Debt Advisors

Debt advisors provide a range of services to their clients, helping them to manage and restructure their debt in an effective manner.

The most common services offered by debt advisors are:

  1. Financial Planning: A debt management company can assist you in setting up a budget and creating a financial plan that will enable you to better manage your debt. This can include advice on how to reduce your spending and increase your income.

 

  1. Debt Consolidation: This is when a debt advisor combines multiple debts into one single loan with one monthly payment. The advisor can help you find the best terms for your loan so that it works best for your situation.

 

  1. Bankruptcy Advice: If your debt has become unmanageable, a debt advisor can provide advice on whether bankruptcy is the right option for you. They will guide you through the process of filing for bankruptcy and explain the consequences so that you can make an informed decision about whether or not it is the right choice for you.

The Benefits of Debt Advisory and Restructuring

Debt advisory and restructuring services can help individuals and businesses in numerous ways. Here are some of the most common benefits associated with using these services:

  1. Access to Professional Expertise: Working with a debt management company gives you access to professional advice and guidance on how to best manage and reduce your debt. Debt advisors have the experience and knowledge to help you develop a plan that fits your budget and enables you to pay off debt in a timely manner.

 

  1. Lower Interest Rates: A debt advisor can negotiate with creditors to lower the interest rate on outstanding debts. This can help you save money over time and make it easier for you to pay down debt.

 

  1. Improved Credit Score: Debt restructuring can also help improve your credit score by reducing the amount of debt you owe and making payments on time. This can make it easier for you to obtain credit in the future and get better rates on loans.

Top Signs It’s Time to Hire Debt Management Company

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Are you struggling to keep up with your debts? If so, you may want to consider hiring a debt management company to help you get out of debt and stay out of debt. A debt management company can help you manage and even reduce your debts.

Let’s look at some signs that indicate you should hire a debt management company. These signs include having multiple debts, high interest rates, feeling overwhelmed, and more. Read on to learn more about these signs and why you should consider enlisting the help of a personal loan settlement and litigation services.

You’re Only Making The Minimum Payments

If you’re only making the minimum payments on your credit cards and other debt, it can be hard to get ahead. The minimum payments don’t even cover the interest, so you’ll never pay off the full balance this way.

A personal loan settlement and litigation services can help you find a more manageable repayment plan. They’ll work with your creditors to lower the interest rate and possibly reduce or eliminate late fees so that you can make larger payments each month. This will help you pay off your debt faster and get out of debt sooner.

Your Debt Is Growing

If you find that your debt is getting bigger instead of shrinking, it may be time to consider a debt management company. This could mean that you’re just barely keeping up with your payments and you don’t have enough money left to pay down the principal balance.

A personal loan settlement and litigation services company can help you create a payment plan that works for you and help you negotiate with creditors to reduce your interest rates and fees. A debt management company can give you personalized advice and solutions that are tailored to your situation.

You’re Using Credit To Pay For Everyday Expenses

If you find that you’re relying on credit cards to pay for everyday expenses like groceries, gas, and even utilities, it’s a sign that your debt has gotten out of control.

When you don’t have enough money to cover these costs, it means that your debt is growing faster than your income. This can be a dangerous situation to be in, as you could quickly find yourself unable to keep up with the minimum payments.

YOU’RE CONSIDERING BANKRUPTCY

If you’re considering bankruptcy, it may be time to consider hiring a debt management company. A debt management company will work with you to develop a payment plan and negotiate with your creditors to reduce interest rates and fees associated with your debt.

They can also help you understand the process of filing for bankruptcy, which can be complicated and stressful. With their assistance, you can make sure that bankruptcy is your only option and that you make the most of it.

You’re Getting Calls From Creditors

If you’re getting frequent calls from creditors, it may be time to consider hiring a debt management company. Creditors call because they want to be paid and they want it now.

They will be relentless in their pursuit of payment and can often be intimidating and aggressive. When you hire a personal loan settlement and litigation services, they can step in and take the calls for you. This can provide you with some peace of mind and help you avoid unnecessary stress.

5 Debt Trap Signs That Tell You Need Instant Debt Management Services

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Debt traps are a severe problem that is commonly misunderstood. Most borrowers are generally fully unaware that they are sliding into this trap. Therefore, you must be aware of the warning signals that you might be falling into a debt trap if you want to maintain financial stability.

If someone takes out a new loan to pay off an existing one, managing numerous loans might be difficult. To help you, instant debt management services in Dubai are available. With these services, you may consolidate all of your various debts into a single, straightforward loan, making it much simpler to manage and make on-time payments.

Read the following guide to see if you are at risk of getting into a debt trap.

  1. You Can’t Afford To Pay Your Credit Card Bills

You are in danger of getting trapped in debt if you don’t make your credit card payments on time. Paying off what you owe on your credit card ends up being quite expensive because of the high-interest rate. Consider your finances carefully if you are having trouble making your credit card payments.

  1. Borrowing Loans To Pay For Daily Expenses

If you frequently use your credit card for purchases and borrow money by credit card, personal loan, or small-amount loan, you run the risk of falling into a debt trap.

People who don’t have enough money to fulfill their monthly bills may use their credit cards or perhaps consider getting a personal loan. But you should be aware that it’s extremely risky and might put you in a debt trap. While it could be practical at the moment, paying back the interest on short-term borrowing might become difficult over time. Since you have to pay back much more than you borrowed when the time comes.

  1. Borrowing Money To Repay A Debt

You need to catch up on your finances if you routinely take out loans to pay off other loans. To settle your debts, you can soon find yourself caught in a debt cycle. Along with growing your liabilities, you are also lowering your ability to borrow money. Maintaining monthly payments between 30–40% of your monthly income is one way to keep your debt under control. There is no need to worry if, despite your best efforts, you continue to fall behind on your debt payments because instant debt management services in Dubai are always there to help you stay out of debt traps.

  1. Banks Reject Your Loan Application.

If you apply for a loan and the banks reject it, you probably already have a lot of debt. Based on your income and the total number of loans you currently have, banks determine how much you are eligible to borrow. You might have reached your borrowing limit if you acquired too many loans for minor purposes; as a result, banks might refuse your further loan requests.

However, you can get out of this situation with the help of instant debt management services in Dubai.

  1. Emis Are More Than Half Of Monthly Income

Many people have a variety of loans, and since “good loans” are frequently necessary, we cannot avoid taking them. But a lot of people still regularly borrow money to pay for all of their purchases, which is not a sign of good financial health. The majority of financial advisors advise keeping your total EMIs under 50% of your monthly income. Let’s say your total EMIs, which comprise credit card, personal, auto, and home loans, exceed this limit. If so, you should talk to instant debt management services in Dubai to avoid falling into a debt trap.

Contact Lin International Debt Management for the best financial guidance that will allow you to escape the debt cycle without stress!

Is Refinancing for Home Loan Settlement a Good Idea?

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Do you need to refinance your house? While this is a personal choice, it often makes sense to get the best mortgage. Although refinancing is not a “one-size-fits-all” option, you may make the right choice if you give it some careful thought. Refinancing your house allows homeowners the chance to get better loan terms and lower their monthly payments, which is one of the most significant advantages.

You are essentially taking out a new loan to replace your current mortgage when you refinance your house, usually with better terms and conditions to get a home loan settlement in UAE. For instance, refinancing your mortgage enables you to benefit from lower interest rates and longer-term lengths, which allows you to pay back less each month.

If you’re thinking about refinancing your house, there are a few things to consider.

  • You must first be approved for a new loan. This entails fulfilling the lender’s requirements, which may differ from those of your existing lender.
  • To be eligible, your home must also have a certain amount of equity. To get the greatest bargain, look around for offers from several lenders if you can get approved for a refinance loan.
  • To locate the one that best suits your needs make sure to evaluate interest rates, costs, and terms.
  • You should consider your objectives. What do you want to achieve by refinancing your mortgage? Do you wish to pay off your debt sooner or cut your monthly payments?

How Does Home Refinancing Work?

Before refinancing your mortgage, there are a few things to think about:

  • Make sure your credit score is high enough to qualify for a lower interest rate by checking it first. You will feel more confident to refinance for better rates if you have a strong credit score.
  • If you are looking for home loan settlement in UAE, a lower interest rate will save you money, so compare the costs of refinancing with those costs by looking around online to discover what rates you are eligible for.
  • Third, ask your present lender whether they can match or better the prices you’re seeing online. As a result, you’ll have a clearer picture of the procedure and whether refinancing is ideal for you.
  • Getting pre-approval is the last step, and you can do it in person, over the phone, or online. The amount of money a lender will be willing to offer you is indicated by a pre-approval. Pre-qualification can be completed instantaneously, however, pre-approval may take a few days.
  • A lower interest rate will save you money, but make sure you compare those savings against the costs of refinancing. Refinancing could not be worthwhile if the savings are insufficient to offset the expenses.
  • Consult a debt management firm if you are unsure if refinancing is the best option for you. They can assist you in understanding the advantages and disadvantages of refinancing and in selecting the option that is best for your particular financial circumstances.

Looking to manage your debts for home loan settlement in UAE? Contact Lin International Debt Management to receive high-quality assistance from professionals in the field!

Should I Choose Debt Consolidation or Debt Restructuring? Which Is Better?

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Personal debt is a serious problem in the UAE. When ignored or not handled properly, the condition becomes even worse. According to CEIC Data, UAE household debt reached 446.5 USD billion in August 2022. When dealing with multiple loans and debt, you might feel hopeless and think that there might not be a way out for you. Fortunately, you can make things a bit easier for you by seeking debt advisory and restructuring services in the UAE. Debt advisors know how to help you manage your expenses and clear your debt and loan payments.

How to Solve Excess Debt Problem?

Most people find themselves trapped with credit card debt, which grows very quickly because of high-interest rates and penalties that banks charge on borrowers. In addition to credit card debt, a home mortgage is another major component of debt for many people. When you have debt that you cannot manage, there are generally two ways to bounce back: debt consolidation and debt restructuring.

While both debt consolidation and debt restructuring may share some similarities that can help consumers handle their debt, they are entirely different kinds of debt management relief processes.

How Are Debt Consolidation and Debt Restructuring Different?

  • Debt Consolidation

Debt consolidation is a debt relief process that allows a borrower to refinance or convert multiple smaller debts with higher interest rates into one single loan. Paying for one single loan instead of several loans makes it easier for borrowers to pay off their loans in a short amount of time.

If the single loan has lower interest rates, the monthly payment also becomes smaller than before. This also means the money that was previously used to pay the interest payment of multiple loans can now be used towards the loan principal.

  • Debt Restructuring

Debt restructuring is the arrangement in which the loan provider and the borrower agree on an amount that the borrower can pay back. The borrower, also called the debtor, gets assistance from a credit counselor to speak with the loan provider, also called the creditor, in an attempt to get out of the debt owed.

In such a case, the debt counselor works to negotiate with the creditor and tries to come up with an arrangement where the debtor has to pay only partial debt instead of the full debt amount. If it is done right and handled properly, this can be successful. Just make sure that you get in touch with experienced professionals who specialize in debt advisory and restructuring.

The main difference between debt consolidation and debt restructuring is that:

  • Debt consolidation requires a new loan contract and a new loan application
  • Debt restructuring retains the existing contract but involves negotiation.

While a borrower who applies for debt consolidation doesn’t need to be struggling financially to pay off the debt, a borrower can apply for debt restructuring only if he/she is in financial hardship. While debt consolidation may not degrade your credit score, debt restructuring can.

In other words, while both debt consolidation and debt restructuring are designed to provide debt relief and make the debt more manageable, both have different processes and terms and conditions.

If you are also struggling with debt, contact us for debt advisory and restructuring now.

How Can Mortgage Restructuring Services Help In Managing Debt?

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Are you struggling with paying off your mortgage due to your personal struggles? Well, don’t worry we have got a solution for you!

Depending on your financial circumstances and how much you can afford to pay, the lender may agree to restructure your mortgage by adjusting the terms of your loan. The lender may temporarily postpone your repayments or lower them to an amount you can afford to pay. Although this is not very frequent, some lenders may even agree to lower the interest rate applied to your loan or provide you with a fee waiver.

Find Mortgage Restructuring in UAE to stop your suffering as a homeowner. By changing the monthly payments, you make, along with other terms, a modification can help you keep from defaulting on your mortgage. A mortgage loan modification can be a smart financial decision for you.

Who Can Go for Mortgage Restructuring Services?

Mortgage modification eligibility requirements vary from lender to lender, but in general terms, you must:

Give proof of severe financial hardship, including things like:

  • Chronic disease or disability
  • Passing away of a family member (and loss of their income)
  • Natural calamity or emergency
  • Uninsured property loss
  • Costs of housing suddenly rising, including increases in property taxes or homeowner association dues
  • Divorce
  • Job Loss
  • Facing High-Burden Ratio

Benefits of Mortgage Restructuring

Although a mortgage modification will lower your monthly payments, you might incur higher overall expenditures throughout the loan. Find Mortgage Restructuring in the UAE if you are eligible for a mortgage modification to reduce your payments in several ways, including:

Cutting Your Interest Rate: You can significantly lower your monthly payment by cutting your interest rate by a few percentage points. The step-up method is frequently used in rate reduction changes, and it entails periodic (usually every five years) increases in your interest rate and monthly payment amount.

Increasing the Repayment Period: You can lower your monthly payments by spreading out your loan repayment over a longer time frame. Just be aware that doing so can result in a considerable rise in the total interest you pay throughout the loan duration. However, you can think about refinancing a loan with a better rate if your circumstances alter and you can now afford a bigger payment.

Change from An Adjustable To A Fixed Interest Rate: If your financial difficulty is due to recurring payment increases associated with an adjustable-rate mortgage (ARM), the lender may decide to switch you to a fixed-rate loan that is more predictable and manageable.

Refinancing: Technically, a refinance does not constitute a modification of your mortgage because it results in a new loan arrangement rather than modifying your current one. As it might be difficult for modification candidates to qualify for a new loan, it is rarely a practical solution. But occasionally, lenders would advise borrowers to go this path if they have large assets, they can utilize to cover the debt in an emergency. Talk to your Debt Management company about your condition before finalizing any decision.

If you’re worried about falling behind on your mortgage payments, you’ll need guidance to figure out what you can do. Find Mortgage Restructuring services in the UAE to get informed about your alternatives. Contact Lin International Debt Management to get assistance in negotiating with the bank and taking care of your debt for you!

What Happens When You Have Credit Card Debt?

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If you have accumulated a huge credit card debt and finding it extremely difficult to repay it, the best step you can take is to get the assistance of debt management experts. When you stop paying your credit card bill, you will be charged a late fee, you will lose your grace period, and you will also have to pay interest at a penalty rate.

With credit card debt, your credit score will also take a dip if you have delayed your payment for 30 or more days. When you choose to not pay it at a later date, your issuer may also close your account. However, you are still required to pay your credit card debt in full along with interest.

If you don’t pay your credit card debt for a long enough time, your credit card issuer will eventually sue you for not making repayments or sell your debt to a debt collection agency which could then sue you.

Fortunately, it is not all or nothing scenario with credit card payments. This could be a different story if you pay the minimum amount required monthly. While it is highly recommended to pay your credit card bill in full, you must focus on paying at least the required minimum amount if you can’t pay in full.

If you always pay the required minimum amount by the due date, your account will always remain in good standing and you won’t face any penalties and late fees. However, you must realize that paying the minimum amount only every time means you will have to pay interest on the remaining balance at your credit card’s regular interest rate. This amount accumulated by interest can be very substantial when summed up after a few years.

Here is what happens when you have credit card debt and don’t pay it:

  1. When You Pay Only The Minimum Amount Instead Of The Full Balance Due:

The unpaid amount will bear interest at your card’s regular APR. You might lose your grace period, which means new purchases will also accrue interest right away.

  1. When You Don’t Pay Your Credit Card Bills At All:

In this case, your account will be reported as past due date to the credit bureaus once you miss two due dates. Once this happens, your credit score will take a dip instantly. Plus, a late fee will be added to your credit card balance. Plus, your issuer might apply a penalty APR on new purchases but only after giving a notice 45 days in advance.

  1. If You Are 60 Days Behind On Your Minimum Payments:

Your credit card issuer can penalize you by charging a penalty APR to your entire existing balance.

  1. If You Are 6 Months Behind On Your Minimum Payments:

The credit card issuer will consider it a loss for taxes and will have to charge off your debt. In this scenario, they may sell your debt to a collections agency or they might choose to sue you.

  1. If You Don’t Make Credit Payments For 3 To 15 Years:

In this scenario, you will be charged with a lawsuit, depending on which state you live in.

Hence, managing your credit card debt is extremely important. In case you don’t know how to get started or don’t see any impact after trying different tips you find online, don’t hesitate to seek the advice of debt management experts.

How to Write a Loan Restructuring Request Letter? Know Your Rights!

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Millions of individuals have experienced extreme economic suffering as a result of the economic consequences of the COVID-19-induced pandemic. Many people are still required to labour for less money. Many others who lost their jobs or businesses were unable to obtain productive employment.

Loan Restructuring is a procedure to avoid default repayment by borrowers in financial difficulties and renegotiate the interest rates to change the conditions of their loans with their lenders. It aids in maintaining consistency in debt servicing and provides borrowers with some leeway to regain financial stability.

A Loan Restructuring Process May Involve:

  • Increasing the loan repayment period
  • Changing the frequency of interest payments
  • Reducing the loan EMI

Who All are Eligible for Loan Restructuring in UAE

The eligibility of a borrower for loan restructuring depends on the following parameters:

  • How much loss of income or business suffered as a result of pandemic
  • Your repayment capability which itself depends on different factors such as credit history
  • Document verification and their evaluation by the lender
  • The lender’s loan restructuring policy

How to Apply for a Loan Restructuring?

  • Discuss your issue with your lenders. You may show that you are taking responsibility for meeting your financial commitments by keeping them updated.
  • You should ask your bank to postpone your repayments in light of the ongoing TESS initiative, which enables clients to receive some financial relief if they can demonstrate that they were negatively affected by Covid-19.
  • You should keep applying pressure to the bank to replace your present loan and two credit cards with one that has a longer term and lower interest rates. You’ll have some breathing room as a result.

A loan restructuring request letter that complies with specific requirements and includes supporting documentation is required to apply for a loan restructuring. Read the following instructions to learn how to format a loan restructuring letter.

Details to Be Mentioned in Your Loan Restructuring Request Letter

  • Your complete address, as well as your contact information or email address, as your lender may need to contact you.
  • Entire account details are required, including everything from the account holder’s full name to the account number.
  • Request loan restructuring together with your monthly income and mention if there is a crisis that prevents you from repaying the lenders.
  • To rest your case, mention the loan details: monthly income, asset worth, the amount owed, and monthly expenses.
  • Write your name and signature at the bottom of the letter, and preserve a photocopy for future reference.

Receiving Harassing Calls from Your Bank For Repayment of Outstanding Loan? Know Your Rights!

In the UAE, a customer may ask the bank or financial institution to restructure his or her loan or credit card outstanding payment if they are in default on their obligation to pay off their outstanding credit card balances or personal loans.

  • If The Bank Agrees To Loan Restructuring:

The Bank must offer a new repayment plan within ten days of the date it and the customer reaches an agreement to do so for the loan or outstanding credit card balance. The Consumer must receive a written disclosure and explanation of the altered repayment/payment arrangement from the Licensed Financial Institution within 10 full business days after the agreement.

  • If The Bank Doesn’t Approve Loan Restructuring:

If the agreement is rejected by the Licensed Financial Institution, they are required to internally record their justifications and notify the Consumer in writing of their decision.

  • Say No To Harassment!

Consumer Protection Regulations for UAE Banking Customers, Article 5.2.5.6 states:

Your bank may not harass you while following up on outstanding credit card or loan payments. The bank may not contact its customers excessively or at inconvenient hours to collect overdue credit card or loan amounts.

Contact Lin International Debt Management for Dubai’s top debt restructuring program that has assisted thousands of people and families in eliminating their debt.

Credit Card Debt: How We Fall into the Trap & How to Get Out

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Many people in the UAE fall into the credit card debt trap without even realizing it until they are buried in debt that they can’t get out of without filing bankruptcy. This can be due to job loss, medical expenses, or just having bad spending habits.

Whatever your reason may be, if you’re looking to get out of credit card debt and wondering why you fell into the trap in the first place, this guide will give you the answers you need and tips on how to prevent yourself from going there again in the future.

Not Repaying The Entire Credit Card Bill

One of the most common reasons people fall into a credit card debt trap is by not repaying their entire credit card bill each month. When they do this, they are just allowing themselves more and more credit on their cards.

And when they finally can’t keep up with it anymore, it’s too late because they’re already in debt. It’s important to always make sure you’re paying off your credit cards every month so that you don’t end up in debt.

Don’t Spend Money On Things That Aren’t Necessary

The most common reasons for getting into credit card debt are overspending and getting caught up in lifestyle inflation which is too common in the UAE. Once you’re in a hole, it can be difficult to get out, but there are ways.

If you find yourself constantly spending money on things that aren’t necessary, it’s time to reevaluate your spending habits and find more frugal ways of living. Start by giving yourself a budget and sticking with it as best as possible.

Pay Off Those High-Interest Cards First

One of the best ways to get out of credit card debt is by paying off your cards with higher interest rates first. It may be tempting, but it’s not a good idea to pay off low-interest cards with high balances before higher-interest ones.

You should start with the highest balance and work your way down to lower balances. You’ll end up saving money in the long run and making progress faster on eliminating debt.

How To Get Out Of Credit Card Debt?

If you have fallen into the trap of credit card debt, here are some tips on how to break free from the cycle so that you can start living life on your own terms again.

Credit Card Balance Transfer

Credit card balance transfers are a great way to get out of credit card debt by transferring your high-interest credit card debt onto a low-interest credit. In exchange for lower interest rates, you’ll have to pay higher transfer fees. Make sure you do the math and see if this is the best option for you before signing up.

Credit Card Settlement Plan

It can be difficult to settle down your credit card debt. The best way to get out of credit card debt is by contacting professionals who specialize in credit card settlement plan in the UAE.

These companies are set up specifically for this type of situation, and they can help negotiate settlements with your creditors on your behalf. They will also make sure that you’re never making payments more than what you can afford.

Conclusion

By taking a few simple steps, you should be able to eliminate or at least minimize your debt with a credit card settlement plan. You never want to fall too far behind on these payments, as the consequences can be disastrous if you allow the interest and fees to pile up – but with a little diligence, you’ll be well on your way to making your debt a thing of the past.

Why Corporate Debt Restructuring Can Be Good for Your Business?

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When an organization can’t pay back its debts, it needs to find some way to restructure its debt and make it more manageable.

This process is known as corporate debt restructuring, and it can help an organization take care of its debts by paying out less than the full amount owed, giving them the chance to get back on their feet again and grow with their customers and employees.

In this article, we will outline why corporate debt restructuring can be beneficial to organizations.

  • Protection from Creditors

If a company has too much debt and is unable to pay, it might petition a court to turn over its assets in exchange for its creditors writing off some or all of their debts.

In doing so, companies that go through corporate bankruptcy will have time to restructure and cut costs, giving them a better chance at staying afloat rather than shuttering shop or getting bought out by another company.

  • Reduced Financial Burden on Company

If you’re looking to keep your company viable in a struggling economy, there is no better way than restructuring your debt. By taking care of obligations quickly and efficiently, you’ll be able to reduce financial pressure and focus on other matters instead.

If people trust that your business is stable, they will feel comfortable buying from or working with you—and won’t worry about the prospect of your company going bankrupt.

  • Greater Flexibility in Business Operations

When a corporation is facing substantial financial difficulties, a debt restructuring may be required to maintain day-to-day operations. A restructuring gives businesses more flexibility in managing their affairs and obtaining funding.

The alternative bankruptcy may force a business to lay off employees and close several divisions, or even shut down completely. A corporate bankruptcy can also ruin a company’s reputation with customers, vendors and other industry players.

  • Maintain Good Credit Score

Every company wants to keep a good credit score. That’s because it’s easier and cheaper to borrow money when you have good credit. By restructuring your debt, your company can stay competitive, profitable, and maintain a healthy financial standing.

A corporate debt restructuring allows businesses with too much debt to pay back a portion of what they owe in order to get their finances back on track.

  • Avoid Bankruptcy

The goal of corporate debt restructuring is to allow a company to pay back their creditors over time instead of all at once in one lump sum. It can also be used to help companies avoid bankruptcy, which can be extremely costly.

Bankruptcy will make it difficult for you to obtain credit and may also ruin your business reputation as well. Instead, corporate debt restructuring allows your business to remain solvent and helps prevent bankruptcy.

Conclusion

Corporate debt restructuring can be good for your business. But in order to get the best experience from this type of service, you will need to make sure that the best debt restructuring advisory are involved.

What Are the Debt Repayment Options for Me?

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Paying off debt is not like getting into it. The repayment takes more time, effort, or extra money. And sometimes, it’s the combination of all three. This is why getting out of debt quickly and painlessly is like a dream for many debtors. They try all the techniques to get rid of the debt amount and live peacefully for the rest of their life.

We know it’s difficult but not impossible. The only thing is you should choose the right method to repay your debt. But, before that, you should get answers to the questions like how patient you are willing to be to pay off your debt, how much risk you are willing to take to do so, and if you understand the potential consequences of debt repayment options.

Based on the answers, you should choose one of the best repayment options from the following list. 

  • Paying It Yourself or As Agreed 

Typically, it’s one of the cheapest options to repay your loan. You will do everything yourself based on the agreement signed between you and your lender. There will be no third-party involvement as you will sort out everything with your lender.

This option is highly effective unless penalty rates and late or over-limit fees are involved. With no extra charges, you will pay what you owe.

  • Debt Management Program (DMP)

If your income is regular and interest rates are high, you should opt for a Debt Management Program through a non-profit credit counseling agency (CCA). The agency will help you pay off your debts with lower interest rates and better repayment terms. The agency has different ways to do so.

Some important things to know about the Debt Management Program is that the debt is paid off in 5 years or less and there are some reasonable fees involved. You shouldn’t worry about the fees as they get counterbalanced by the lower interest rates and elimination of late fees.

  • Debt Consolidation 

As one of the debt management strategies, debt consolidation combines multiple debts into a single monthly payment. It simplifies the payment schedule and provides lower interest rates than you are currently paying on your debts.

Repaying your debt with consolidation will not make the payment easier but keep you stress-free and reduce your amount as the interest rate will get lower. Also, you don’t have to keep the track of multiple loan statuses.

  • Debt Settlement 

When you settle your debt for less than what you currently owe with the promise that you will pay the settled amount in full, it is known as debt settlement. Sometimes, debt settlement is known as debt relief or debt settlement.

It’s a good option because the repayment amount is less and you get rid of the debt at once. Also, there is no legal involvement. Usually, the debt settlement is handled by a third-party company. But, if you want, you can do it yourself.

Of these options, Debt Management Program is the best followed by debt consolidation because both options reduce the interest rates. In the Debt Management Program, you get better debt repayment terms as well.

When Should I opt for Home Loan Refinance Settlement Process?

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Home loan refinancing is very similar to applying for a new home loan. You get money from the bank or other financial institutions to pay for the home bought. The reason people prefer the home loan refinance settlement process is to make it affordable. Sometimes, the loan interest along with the principal amount gets challenging to pay for the homeowners or things become complicated with the lender.

The home loan refinances settlement process is like a savior for the borrowers. But, unfortunately, many of them don’t know when to opt for the same. They don’t know when the process will be worth it for them and get the most out of the same. And thus, borrowers/homebuyers miss out on the major benefits of the home loan refinance settlement process.

In this post, we will discuss a few situations when you should opt for a home loan refinance settlement. 

  • When You Want A Lower Rate Of Interest On Your Home Loan

This is the most common reason to opt for home loan refinancing. If you’re paying a higher interest rate on the current home loan, you can revise it by refinancing. You can look out for a lender offering a lower interest rate and making your home loan affordable. This will help you financially and in the long run.

  • When You Want To Change The Interest Rate Type Of Your Home Loan

Interest rates on home loans are of two types- fixed and floating. Refinancing will allow you to switch from one interest type to another. For example, if you have a fixed interest rate on the current loan and the interest rates in the market are declining, you can switch over to a floating rate loan. With a floating interest rate, you will be charged as per the current industry rate.

  • When You Want To Reduce The Tenure Of Your Home Loan 

Usually, short-term home loans have high-interest rates. So, buyers generally prefer long-term home loans. Another reason to opt for long-term home loans is easy repayment. But, if your financial position has changed for the better and you want to get rid of your home loan soon, refinancing is a great option. With a new lender, you can reduce the tenure of the home loan.

  • When you want to reduce the EMI amount of your home loan 

Another home loan term that you can change with refinancing is the EMI amount. If you think the monthly EMI amount of your home loan is getting difficult to pay because of your financial condition, you can change it through the refinance settlement process. For this, you should look for a lender offering a lower rate and/or longer tenure. This will reduce your monthly commitment and make the loan repayment easy.

  • When You Want Better Terms Or Services On Your Home Loan 

Sometimes, there are problems other than EMI amount, interest rate, and tenure in the home loan. Or you don’t like the terms of the current home loan or services offered by the lender. In such situations, refinancing will be helpful as you can change the home loan terms. You can get a lender with a better loan service and the best deal. Things won’t be complicated during repayment.

  • When You Want To Borrow More Money 

Things might change anytime and every time after taking out a home loan. The amount you applied for might not be enough for your current needs. So, if your funding needs have increased, you should refinance your home loan. With this, you will get additional funds by way of a bigger loan.

Now, you very well know the situations when the home loan refinance settlement process is applicable. So, get your home loan on the right track through refinancing.

A Beginner’s Guide: Everything You Need to Know about Loan Buyout

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Have you been burdened with too many debts? Are you going over budget because of high interest rates? Getting a buyout loan is the solution to these problems.

But what is it exactly? We’ll cover everything you need to know about buyout loans to help you decide if this type of loan might work for you.

Read on to learn more about buyout loans and its benefits and discover how they can help you get started on the road to financial independence.

What Is A Buyout Loan?

You choose a loan buyout facility to repay all your previous loans, for instance any personal loans, merchant cash advances, or credit card debts. Taking out this loan will help you get rid of any other debt that was overburdening you as a result of financial hardship.

Typically, a borrower who takes out a buyout loan must pay a fixed monthly payment to the lender for two to six years to pay off their loan. There are several types of loans that can be financed with it:

  • Mortgage
  • Car Loans
  • Home Loans
  • Medical Loans
  • Educational Loans

Buyout Loan in the UAE     

Consumers with multiple pre-existing loans can take advantage of the facility offered by financial institutions. By settling their previous loans, borrowers can gain access to additional funds. Borrowers can access additional funds through this loan, while also simplifying their monthly payments since they can pay off the buyout loan in one instalment.

Which Lender Is The Right One For Buyout Loans?

When it comes to finding the right lender for best buyout loans in the UAE, there are a few things you should know. One is that every lender has their own individual process, so research is the key when trying to find the one that will best fit your needs. Next step should be to check the loan repayment period, interest rates, and the minimum criteria to avail loan.

Benefits of Buyout Loan UAE      

Do you have any loans or credits from banks or companies in the UAE? Are you unable to repay it? If so, then you might want to consider loan buyout in Dubai as an option for your financial needs. Here are the top reasons why:

1) Competitive Interest Rates

A loan buyout can be a smart decision for those who have exhausted all of their other options. For example, the interest rates are usually competitive and the requirements are not too strenuous. You can easily get a buyout loan at 4%- 7% if your credit score is good.

2) Quicker Procedure

The procedure for getting loan approval is relatively straightforward. First, you should apply for the loan online with an assigned broker. The broker will help assess your suitability for the loan and advise you about its terms and conditions, as well as any available options for loans with shorter repayment periods or interest rates lower than those advertised.

3) Flexible Repayment

A loan buyout can provide a number of benefits. One benefit is that the repayment process is flexible. Repayment schedules can be tailored to suit your needs and are often over time periods of one year or more.

Conclusion

We hope that you gained a clearer picture of buyout loans and how they can help you with your finances. Visit our website for more details.

Should I Collect a NOC After Personal Loan Settlement?

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Personal loan settlement is a great way to get rid of lenders’ everyday calls, interrogations, and undue pressure. It gives peace of mind, especially if you work with a reputable and experienced personal loan settlement and litigation service provider. You get out of the process without any complications.

People feel relaxed after settling the personal loan amount. But, most of them commit a major mistake of not collecting a NOC after the settlement. They assume that a No objection Certificate or NOC is of no use after the settlement. The records are digitally maintained and they can recover them online whenever required. But, actually, not collecting a NOC is like inviting problems for yourself. The personal loan settlement and litigation services will not be worth it if you don’t collect a NOC.

In this post, we will discuss some important reasons or benefits to collect a NOC after a personal loan settlement. 

  • You Will Prevent Your Credit Score From Getting Affected 

As soon as you settle the personal loan, you should submit the NOC to CIBIL or make sure your lender submits it. With a NOC, the CIBIL will update the records mentioning that the loan amount is paid and nothing is left unpaid.

If you don’t submit a NOC, your personal loan will be considered unpaid, affecting your CIBIL score. You will be considered a loan defaulter. And due to this, it will be difficult for you to get credit in the future from the bank and other financial institutions.

  • You Will Present NOC As Proof Of The Paid Amount 

Today, everything is digitalized. Whether you apply for a personal loan or personal loan settlement, lenders and other associated institutions will have a record. They will extract the details whenever required and prove that your loan amount is paid. But, things might change anytime.

If the details are not recorded properly, get deleted or the system crashes, you will have nothing to prove yourself. Maybe after 10 years or more, you would receive a notice saying that you have not cleared dues. If this happens, it will be difficult for you to come out of this problem. You might get legally trapped by the lender.

Whether it’s a year or 10 years of personal loan settlement, you will prove it easily using the No Objection Certificate. The best part is no institution can deny this proof.

  • You Will Avoid Legal Complications In The Future 

When banks or financial institutions don’t get details, they end up sending a legal notice to the borrower, no matter how old the personal loan transaction is. Based on the details they get from their systems, they assess the situation and take legal help to get the loan amount paid.

With a NOC, you can show that the loan amount is settled and paid. You will not face any legal consequences because a NOC released from the banks or financial institutions are accepted everywhere.

How To Get A NOC

An NOC is likely to be issued in a few days after the personal loan settlement. You should be a bit more proactive. With the help of the personal loan settlement and litigation service provider, you should write a letter to the bank or the financial institution to issue a No Objection Certificate.

Common Credit Card Restructuring Questions Answered

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People know there is something called credit card restructuring, but unfortunately, they don’t use this service offered by financial institutions due to their lack of knowledge. They don’t know what this service is all about, how it works, and others. And thus, they don’t get the benefits and suffer from many credit card problems.

To avoid any, we will answer some common restructuring questions in this post. 

What Is Credit Card Restructuring?

The economic fallout due to the COVID-19 pandemic led to significant financial stress for customers. This is where it  helped people and is helping them.

The literal meaning of the term “restructuring” is making changes in the existing structure to give it a better look or make things better for all. Similarly, it means making changes in the existing functioning of credit cards to make repayment easy.

In  restructuring, the bank or the financial institution converts the credit card dues to a term loan with equated monthly installments (EMI) with a reduced rate of interest. When you opt for the restructuring service, the credit facility on the credit card withdraws.

Who Is Eligible For Credit Card Restructuring?

Everyone is not eligible for it. Generally, the customers whose card accounts and other loan accounts are in good condition with the bank are eligible for restructuring. This ensures the bank that the customer isn’t financially broken completely and there is a high chance of recovery. It’s just the condition that has prevented the customer to pay the credit card dues.

Other than this, the application for the restructuring is subject to internal assessment, based on the bank’s policies and procedures.

What Are The Terms And Conditions Of Credit Card Restructuring?

  • If you fail to adhere to the stipulated payment plan, the restructuring plan may be revoked.
  • After the acceptance of the restructuring plan, the credit card facility extended on the credit card will be withdrawn. The credit card could be re-issued with a suitable limit depending on the timely repayment of dues as outlined in the restructuring plan.
  • You will be liable to pay a late payment fee, interest, etc if charged on your credit card account in the interim period between acceptance of the request and invocation of a restructuring plan.
  • If you hold more than one card with the bank, all the cards will be reviewed for restructuring and blocked for usage on opting in for restructuring service.

How Does Credit Card Reporting Happen On Opting For Restructuring?

It’s very simple. In your credit card account, the “restructured” status will reflect where the resolution plan is implemented in this framework. Other than credit facility and its rules, the credit history will be governed by the respective policies of the credit information companies. They update the details as applicable to accounts that are restructured.

What Will Happen If You Cannot Pay As Per The Agreed EMI Schedule?

The restructuring plan will get revoked upon non-payment and you will not be eligible to reapply for any further restructuring plan.

Credit card restructuring is for your benefit. So, you should gain as much information as possible and use the service undoubtedly.

 

Problems for a Credit Card Defaulter

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A credit card is for your help. With this, you can buy today and pay later to the credit card company. It means even if you don’t have money, you can get things of your choice easily and conveniently, keeping yourself away from the financial crisis.

A credit card gives money but for the time being. You should pay the spent amount later, within a certain period. If you don’t pay the amount, you will become a credit card defaulter. You can avoid this even by paying the minimum amount due at the right time. Every time you fail to pay the amount, the bank adds a penalty increasing the overall credit amount. If the same continues for 6 months or more, you will be termed as a defaulter.

Many people think that the defaulter tag is for a short-term. The bank will remove it once the payment is complete. Thus, people take it lightly and take time to collect cash and pay it to the bank. But, truly speaking, the tag of a credit card defaulter comes with lots of consequences.

Consequences Of Becoming A Credit Card Defaulter 

  • Negatively Impacts On Credit Score 

Missing out on credit card payments, intentionally or unintentionally, leads to a negative impact on credit score. And when the credit score is low, its major benefits get canceled out, and chances of getting a new credit get minimized. This can only be done by using your credit card effectively and paying the bill on time.

  • Blocking Of Credit Card Account

A credit card company considers this condition for a maximum of 6 months. After this, it terms the cardholder as a defaulter. To avoid any risk to the bank, you will be blacklisted. The bank will block your credit card account and you will have no option for credit purchase.

  • Taking Legal Actions

Not paying your credit card bills is considered fraud. No matter what the reason is for not paying the bills, you will be considered wrong in the eyes of law. In this situation, the bank might take legal action against you. Due to this, you will neither get the benefits of a credit card nor will you get a credit card from anybody in the future.

  • Increasing Interest Rates

If you don’t pay your credit card bills for more than 60 days, the credit card company will increase your interest rate. Sometimes, the company increases the interest rate as high as 30% of the credit card overdue. If you don’t pay the amount soon, the interest rate on your credit card will become more than your actual credit card bill.

Increasing Interest In The Outstanding Balance 

Paying only the minimum amount due out of your total credit card bill before the due date is just a way to inform the credit card company that you are active and will pay the bills. But, this action is not long-term. The credit card company might increase the interest rate on the outstanding balance when you are ready to pay. So, it’s good to pay your credit card overdue in full.

Opt For A Credit Card Settlement Service 

If the outstanding balance on your credit card has increased and you cannot pay it together, you should opt for credit card settlement. In this, the lender (credit card company) agrees to forgive a portion of your debt in exchange for a promise from you to pay the remainder. But, it depends on the factors such as your income, how much you can afford to pay, and the amount you owe.

In some unusual conditions, the lenders contemplate rescuing at least a part of their money rather than letting it all go to bad debt. Credit card settlement is not easy. So, you should seek help from a reputable debt settlement company for the same.

Debt Management Tips That Can Make a Huge Difference

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At some point in time, we borrow money from someone to meet our urgent financial requirements. As per research, 70% of the entire population lives in debt. This could be a home loan, a personal loan, or owing money using a credit card. One of the major reasons behind this is the availability of loans as people find it easier to borrow money in order to fulfill their requirements.

Debts can help us to get a better education, purchase dream property, meet medical emergencies, or start a business. Although debt is considered bad, it can bring a huge difference to your finances when managed properly. However, when not managed properly, it can haunt you back. The most common perception about debt is that it is just another name for evil but if you change your outlook on debt, you will notice the other side of it. Debt can significantly benefit you if you opt for the right debt management strategies and disciplined repayments.

Here are some tips for those who are struggling with debt. Spend the next few moments reading below to manage your debts better.

  • Optimize Them All

If you are having several debts then it is time to sit down and optimize your debts. List all your debts, the outstanding balance, EMI of each one, the interest rates, and more. This provides you with an overview of your credits. You will know how much you owe so that you can manage your monthly budget as well.

  • Don’t Miss Payments

You can turn a good debt into bad debt by just skipping or missing a payment. Ideally, there is no concept of a bad loan or a good loan and all loans are similar. However, the payment habit of the borrower is something that makes a loan good or bad. Keep your loan a normal one rather than making it good or bad. Make sure to pay your EMIs every month on the fixed date. If the repayment amount is not fixed, make sure that at least the amount needs to be paid. Paying the EMIs regularly eventually leads you to the day when you will be able to declare yourself debt-free.

  • Prioritize Your Debt

Rates and tenure of different loans vary from one another. As aforementioned, one should optimize the debts to figure out which one is the costliest. Once you find out that, you can work towards closing that particular loan. This will reduce credit from your list and take you a step closer to being free from any debt.

  • Try to Refinance

Loan refinancing means taking a fresh loan in order to close the existing one. It is usually done when a person has more than one loan at a point in time and they are paying a lot of money on EMIs. One takes the loan that is equivalent to the total outstanding amount of all loans and closes all those loans through that new loan. This way, they need to pay only a single EMI instead of paying different amounts to different lenders.

Do you have any other doubts? Debt Management Services in UAE can make everything easier. Feel free to get in touch now to get answers to all your questions.

Debt Consolidation: Is This the Right Thing to Do?

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As the name suggests, debt consolidation is the process to consolidate all the debts or loans into one simple, easy-to-manage loan. In simple terms, you only have to deal with one set of interest rates, fees, and repayments, no matter how many debts you’re currently holding. You will regain control of your payments and shorten your timeline to a debt-free life with a debt consolidation service in the UAE.

Debt consolidation has helped many people in managing their finances. But, whether it’s the right thing for you or not depends on different factors. The factors are benefits, your eligibility, and the need for debt consolidation service.

What Benefits Will You Get With Debt Consolidation?

  • The service will improve your credit rating/score as you will make regular payments over several months or years. So, you will see significant improvements in your score without taking any other major steps.

 

  • The debt consolidation will reduce monthly payments as all the debts will be under the same interest rate. You will eliminate high-cost debts and make progress on your principal amount.

 

  • The debt consolidation service is affordable compared to multiple debt loans. Some lenders even provide rate discounts.

What Are Your Needs For Debt Consolidation?

People apply for debt consolidation loans to set themselves free from multiple debt amounts. But, sometimes, this doesn’t work in their favor. And it’s because they don’t identify the actual need and their future plans.

  • You should look for a debt consolidation service in the UAE only if you know for certain that you will not entertain debt in the future. In other words, debt consolidation is right for you if you won’t take out more debt or rack up your credit card bills during or after consolidation.

 

  • If you can meet all your monthly payments, debt consolidation is a great option for you. Missing the monthly payments cause more significant problems, affecting the credit score and progress on the current debts.

 

  • If you are capable of paying off all your debts in 12 months or less, you don’t need a debt consolidation service. You can get over all your debts just by following a strict budget or eliminating the smaller debts quickly.

What Makes You Eligible For Debt Consolidation?

 

  • You are eligible for debt consolidation service if you get a lower interest rate than what you already have on your debt. But, this point won’t be applicable if your credit score has improved since you took out your previous loans.

 

  • You are eligible if you have a steady income that allows you to make monthly payments. You should be comfortable covering repayments with some extra to spare to become eligible.

 

  • You are eligible if your debts don’t exceed 50% of your household income. If debts are higher, you should look for alternative methods of repayment.

 

  • You are eligible if you can pay off a debt loan amount in five years or less and avoid making repayments forever. This plan will let you see success even faster.

 

Debt consolidation service is a savior for you. But, still, you should think twice and analyze your financial condition before applying for the same.

A Short Guide on Home Loan Restructuring vs. Home Loan Refinancing

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While loan restructuring and refinancing may sound similar, they are different terms and can impact your ability to pay differently. In this post, we will discuss the similarities and differences between the two processes to help you make an informed decision when it comes to home loan settlement.

What is loan restructuring?

Loan restructuring refers to the process of altering an ongoing loan by changing the existing terms of the contract. Many borrowers choose to restructure their home loans when they struggle financially and find it extremely difficult to pay their loans on time.

A loan restructuring process may involve:

  • Increasing the tenure of loan repayment
  • Changing the frequency of interest payments
  • Reducing the loan EMI

These changes are done to make it easier for the borrower to repay the loan timely. This option is chosen usually when borrowers are on the verge of bankruptcy or they are deemed financially unstable to meet the loan obligations any further.

And yes, loan restructuring may negatively impact your credit score and therefore, it is chosen only as a last resort.

Most banks are willing to restructure loans only if it allows them to recover their debts in full or they have confidence in the intent and capability of the borrower.

What is loan refinancing?

Loan refinancing is a process that involves applying for a new loan with better terms than the previous one and can be used to pay the previous loan. This option is chosen mostly when borrowers find a better option elsewhere.

Refinancing a home loan is a much quicker process than home loan restructuring as it is easy to qualify for refinancing. Unlike home restructuring which impacts your credit score negatively, loan refinancing can have a positive impact on the credit score because the payment history will show that the original loan is paid off.

Is loan refinancing a good idea?

Yes, if you find a home loan with better terms, it is worth refinancing your home loan. You can refinance a home loan for various purposes, such as:

  • To reduce the interest loans on the loan
  • To consolidate the loan
  • To change the loan structure
  • To reduce the overall burden of loan
  • To have a longer tenure for repaying a home loan
  • To borrow an additional amount
  • To reduce the cost of the loan
  • To enjoy better services and features offered by the new lender

In short, while loan restructuring is the process of changing the terms of an ongoing loan, loan refinancing is the process of shifting an ongoing loan from one lender to another. One chooses loan restructuring to avoid loan defaults but loan refinancing is chosen to enjoy better interest rates and loan terms.

Since each option affects your credit score and ability to pay differently, it is best to make your choice accordingly. If you can’t figure out what to do to repay your home loan, connect with home loan settlement experts today.

Important Things To Know About Debt Consolidation In Dubai

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Debt consolidation is nothing more than putting all of your debts into one. In general, this is done when there are too many loans and a high-interest rate that must be paid on numerous loans. A new loan is all that is needed for debt consolidation, which is an efficient way of paying off previous loans.

It is evident that paying large interest each month results when there are too many loans from multiple banks with various interest rates. After making the regular monthly payment, there would be just one loan remaining that had a far lower interest rate and would have paid off all of these debts.

If you have several credit cards and personal loans, consolidating your debt is unquestionably an excellent option. You would not be able to save money or pay off these monthly obligations because there would be so many payments in line.

It saves you time because you only have to make one payment since all of your debts have been combined into one. Fortunately, there are numerous debt consolidation services in Dubai that offer these particular loans.

What benefits come with using a personal loan to consolidate your debt?

  • You can lower your interest rate:

Rates on personal loans may be lower than those on other forms of debt. You can save money on loan repayment if you can be approved for a low-interest personal loan and lower your rate.

  • You could secure a low rate:

When you borrow money, your interest rate may occasionally change. In other words, it is connected to a financial index, such as the prime rate. Generally speaking, your rate will increase if the index rate does. Get a fixed-rate consolidation loan if you are tired of having variable-rate debt so that you will always know how much you will have to pay each month.

  • You will have a set repayment schedule:

When you take out a personal loan, you consent to pay it back according to the predetermined timeline outlined in the loan agreement. You’ll know precisely when you’ll be debt-free if you make your payments on time because you’ll get your loan term when you apply. Be aware that your lender can impose a prepayment penalty if you intend to pay off your loan early.

  • You could boost your credit:

Your credit ratings are determined by a variety of elements, each of which is given a distinct weight. Your credit usage rate may suffer if you use all of your available credit. A reduced utilization rate may improve your credit score. Thus, debt consolidation with a personal loan may improve your credit ratings if it results in a reduced credit utilization rate and more on-time payments.

Personal loans for debt reduction are available from several debt consolidation services in Dubai. These lenders provide flexible periods and fair rates of interest, which might make it simple for you to pay back the borrowed money. Before approaching a lender for a personal loan, double-check your eligibility and credit score.

How To Get Out Of Debt In 5 Easy Steps

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It’s easy to get into debt, but it can be very painful and difficult to get back out. It can take just a few years to create tens of thousands into debt, but it takes years and years to pay off that debt. Finding yourself deep in debt can be disastrous. The good note is, getting out of debt is pretty much possible it just takes a little time. While some debts can be unavoidable like, a car loan or mortgage, you can deal with other unnecessary debt that is causing you with huge stress.

Everyone who pays off their debt does it a different way. They often combine strategies to chip away their debt, and they stick with those strategies until the debt is gone. Ask for debt relief help sooner or later. Not only you will better know what you should do also you will have more options available to you.

To get out of debt you need a plan and you need to execute that plan. To help, the Lin International team shares these 5 ways you can approach how to pay off debt and leave some, if not all, of your financial burden behind:

    1. List all of your debts

Organizing all the details of exactly what you owe is the first step that would take you closer to dealing with them. Start with making a list of your various debts with their EMIs, debts, and interest rates. This will help you determine the most urgent or costliest debts. Once your most expensive debts are paid off, take all of that money that you were paying on that earlier debt and focus it on the next one most expensive debt, you will leave with your least expensive debt to pay down at very last. This strategy refers to the snowball method by which you will get out of your debt easily and you will feel more enthusiastic as you see your progress.

    1. Always be on time or automate your payments

Committing to pay your debts needs financial discipline. Be sure your debts are being paid on time every month. And the best way is to Set an ECS mandate with your bank to automatically settle all the EMIs on your chosen debt date. Timely payments not only keep reducing your debt through the tenure of the loan, but also save you from late payment dues, avoidable interest, and lowers your credit score. Therefore, avoid making payments manually via cash, cheque deposit, or even net banking. Just save yourself the hassle and automate your EMI and credit card payment.

    1. Too many loans? Consolidate them.

Is it becoming difficult to keep track of all of your loans? Do you have several loans? Consider consolidating them into one loan, which will leave you with just one EMI. Credit cards, personal loans even home loans can provide you with this option that will eventually help you in closing various debts, leaving you with just one loan to track, also this will help you to swap a high-interest loan for a lower interest one, like paying 30% on credit card debt you could instead move to a personal loan that can charges you 15%.

    1. Spend less & pay more than the minimum

No law says you have to make only the monthly minimum payment on your credit card or loan. You can pay more. However, if you pay your mortgage off early, make sure there’s no prepayment penalty. The Flipside of earning is spending less. Ideally, depending on how far out of debt you need to get. You might do both. And there are a lot of ways to save a little that can add up – from eating out one less day a week to skipping your morning coffee out or taking your snacks to the movies rather than paying for a popcorn candy and a soda.
The extra money you save just like any extra you earn- can go straight to paying down your debt.

    1. Create a budget and debt pay-off plan and stick to it

There are many more tips and tricks to sticking to your budget every month. But following “many” is hard. The first step is to minimize a budget and make a note of your income and expenses. This will also help you think of various ways of minimizing your daily expenses. The money that is saved and can be used to clear your debt.
Make an effort to try and secure a secondary job to earn an additional type of income. The idea is to allocate and place your secondary income towards debts to set them quickly and easily. There are several ways with which you can earn an additional income. Find a way that is relevant to your background, knowledge, and skills.

Everything You Wanted To Know About Debt Restructuring | The Comprehensive Guide

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Understanding Debt Restructuring

Debt restructuring refers to avoiding the risk of default on existing debt or lower available interest rates. Individuals on the brink of insolvency also restructure their debt. Debt Restructuring is a process used by an individual or by a company facing cash flow problems & financial distress to avoid the risk of default to restore its liquidity so that it can continue its operations.

In simple words- Working out on old debt with a new debt refers to Restructuring.

Debt Restructuring In The Times Of Covid-19

As it is famously said “A crisis is a terrible thing to waste” those words resonate truer than today.

The covid-19 crisis is inflicting terrible human and economic costs, it may make it possible to address politically difficult changes in laws, policies, and institutions to save the environment we live in. The government should leverage corporate debt restructuring to support a robust, sustainable, and resilient recovery.

Debt Restructuring Process: How It Works

Some companies seek to restructure their debt when financials are facing bankruptcy. A company might restructure several loans to subordinate in priority to other loans. Senior debt holders are paid before the lenders of subordinated debts if the company files for bankruptcy. Creditors are sometimes willing to reduce debt terms to avoid potential bankruptcy.

Debt restructuring sounds appealing, it’s not for everyone. It’s important to understand how it works and what are its advantages and disadvantages.

Methods To Achieve Debt Restructuring 

Any individual or a company can achieve debt restructuring by entering into direct negotiations with creditors or reorganize the terms of their repayment. Lenders and borrowers that can reach an agreement on a restructuring plan can. Different interested parties often commission their valuations and this can lead to conflicting ideas of how best to restructure the debt and borrower’s business. It can save time and be more productive for all parties to agree on a common valuation approach.

Debt restructuring typically involves the following approaches :

  1. Debt rescheduling– The aim is usually to give breathing space to a debtor in difficult times by extending the period of repayment and reducing the amount of each installment and by granting a period of grace during which no repayments will be made.
  2. Recapitalization– The term capitalization refers to a company changing the proportions of its debt and equity or the makeup of its share capital structure. This will be an attraction to a distressed borrower seeking to make its outstanding debt burden more manageable, it reflects the risk levels attached to different types of equity.
  3. Debt for equity swap– In debt for equity swap financial creditors receives shares in the restructured borrower in return for reducing or cancelling their debt claims. The debt for equity swap reduces the borrower’s balance sheet liabilities and potentially allows a lender to take some of the upsides, as a result of the swap the pre-existing equity holders will be diluted.
  4. Informal debt repayment agreements– companies that are restructuring debt can ask for lenient repayment terms and even ask to be allowed to write off some portions of their debts. This can be achieved by reaching out to creditors directly and negotiating new terms of repayment. This is a more affordable approach than involving a third party mediator and can be achieved if both parties involved are keen to reach a feasible agreement.
  5. Sale of Non-Core Assets– A borrower may be able to take the edge off by selling non-core assets or part of the business and using the proceeds to pay down its debts. A secured lender will need to give its consent to any breakup plan and be comfortable that the amount realized from the sale is appropriate and the remainder of the business will generate sufficient profits to repay its debts.

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