If you are looking to save money within the UAE, take these tips into consideration and get your finances back onto an even playing field.
Always look at interest rates
You may think that a credit card is the best option for you, but the problem is high interest rates just mean that you spiral more and more into debt.
Therefore it is important to always check your credit card deal (and the small print) before submitting an official application.
Having a high interest loan can really drain your savings and mean that whilst you may be making payments, most of that disappears into the interest.
Always shop around for the best credit cards that you qualify for, to ensure that all your money doesn’t get eaten up by interest rates.
Get a savings account
You do actually get much higher savings rates in Dubai than in other parts of the world, particularly in the UK. A lot of accounts offer 3% or more, which is about triple the savings rate currently offered in certain parts of the Western World.
Also be aware that many banks have hidden charges, payment fees etc. So try to avoid banks with these and only choose branches that you think offer the fairest deals and the highest rates.
Budgeting
One of the most sensible options for someone who is struggling with debt is to make sure that you have a budget.
Just try to be aware of what you spend, make simple cut backs. Don’t eat out as often. Look out for sales or offers, only on products that you know you will use.
Try not to get caught up in buying things that you don’t need – we recommend that you wait at least 24 hours without buying something that has caught your eye. That way, you know that whatever you buy is not just an impulse buy.
Consider a loan
If you are in financial hot water, and the problem is only going to be for a short while, it may be worth your while looking for a loan.
Perhaps you are expecting a windfall or just the financial flexibility (albeit temporary) that a loan gives you. Just try to not get caught up in the interest payments, and always make sure that you have a financial plan for the exit from this loan.
Before you buy, one option is to find a loan calculator that will tell you how long it will take for you to pay back your loan.
A few extra tips
Here are a couple of extra tips:
- If you are stuck on a high interest loan, try to prioritise this debt to avoid wasting hundreds in interest.
- Always keep up to date with whatever money you have, to make sure that you don’t get direct debits bounced back. This can mean you have to pay late fees, and it will also affect your credit.
- It can help if you write down your expenses every month. This way you know exactly what you are spending, and what money you have left.
- As hard as it may seem, try to put a little bit aside every month for an “emergency fund”. This can be invaluable if you ever have a non-planned financial struggle at any time of year.
If you are struggling with debt and need to talk to an advisor, contact Citibank. As one of the top banks in the UAE, they can help you take the first financial steps to making ends meet.
