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Excerpts from the article. To read the entire article go to: http://gulfnews.com/business/banking/su ... t-1.667902

Dubai: A recent survey by a credit counselling and debt management company reveals 85 per cent of UAE residents are in debt and landing many in prison.

The survey, carried out by the International Swiss Debt Management (ISDM) Consultancy, also ranks residents from India and Philippines as the highest in terms of total debt. Pakistani and South African nationals follow.

Dubai: A recent survey by a credit counselling and debt management company reveals 85 per cent of UAE residents are in debt and landing many in prison.

"I am not surprised with this result. Indians, and especially Filipinos, go absolutely crazy with borrowing enormous amounts compared to the salary they earn," Steve Gregory, managing partner, Holborn Assets, a financial advisory firm in Dubai told Gulf News.

Emcredit, which allows banks to share the credit history of clients and prospective clients, has been around since the end of 2006 but not all banks have become members.

"I doubt that half of the banks in the UAE have signed up, maybe because they have to pay for membership and a fee for each inquiry," said Gregory.

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The banks don't want to pay a fee to to protect themselves by becoming a member of Emcredit, but would rather lose money they cannot collect on. Dumb banksters. Go figure...............

It's also not surprising given the fact that most people were asked to pay rent up front, borrow cash for cars etc etc.

The UAE really really has to change its laws and help people get out of the situation it/they are in. I don't see it getting better anytime soon.

I think the same percentage of population in debt applies to most countries. Well, those with credit cards and mortgages...

Ambassador wrote:I think the same percentage of population in debt applies to most countries. Well, those with credit cards and mortgages...

But the consequences aren't the same!!! First, US lending institutions work on a credit rating basis. There are 3 major agencies that have all the credit cards, debt, ability to pay, for them to look at before extending a loan. There are many alternatives to clear up debt, the worst being, filing for bankruptcy, but people don't get sent to jail or not being able to pay their debt.

In one way the problems with the economy has been a hard lesson for many people (I can only speak for the US). People who weren't hit hard are watching their money, and those that were hit, hopefully when they get back on their feet, will be wiser with their money. Lessons they will certainly pass on to their children.

Bora Bora wrote:

Ambassador wrote:I think the same percentage of population in debt applies to most countries. Well, those with credit cards and mortgages...

But the consequences aren't the same!!! First, US lending institutions work on a credit rating basis. There are 3 major agencies that have all the credit cards, debt, ability to pay, for them to look at before extending a loan. There are many alternatives to clear up debt, the worst being, filing for bankruptcy, but people don't get sent to jail or not being able to pay their debt.

In one way the problems with the economy has been a hard lesson for many people (I can only speak for the US). People who weren't hit hard are watching their money, and those that were hit, hopefully when they get back on their feet, will be wiser with their money. Lessons they will certainly pass on to their children.

Oh, I was just commenting on the percentage of the populatio in "debt" not the system...

Chocoholic wrote:It's also not surprising given the fact that most people were asked to pay rent up front, borrow cash for cars etc etc.

The UAE really really has to change its laws and help people get out of the situation it/they are in. I don't see it getting better anytime soon.

I would think based on the nationalities mentioned that most of these loans were money that was sent home to buy property/build a house. Quick cash.

It is not unusual to meet a Filipino with a salary of Dh15,000 and over Dh250,000 in debt.

"It's a huge mess. Individuals, even on low salaries of Dh6,000, were able to get eight credit cards from different banks, including platinum, and max them out.

It's the majority of westerners that have to deal with the up front rent, cars, schooling, etc.

Would have been nice to see the percentage of locals that are knee deep in debt.