Tired of paying multiple Credit Card Bills? Consolidate and Reduce your payments

Consolidate debt and reduce your payments

Paying too many cards and Personal Loans? If you’re paying almost half your salary in EMI’s and Card Bills, please read on. The good news is that you can reduce financial payments on Credit Cards, Personal Loans and even Home Loans by comparing your existing credit cards/loans and doing a balance transfer to a cheaper credit card/loan.

Know the cost: Compare current cost of loan with potential cost at current interest rates. You should know the interest rate you are being charged on every credit card and loan. If you took a loan more than one year back, chances are that interest rates would have gone down significantly. You can find the latest rates and offers right here. Simply compare your existing loan/card with a new one and use our simple calculators to see how much you can potentially save by switching.

Paying for Multiple Credit Cards and Personal Loans? You can transfer all your Credit Cards and Loans to a single loan plan: ADIB Al Khair Liabilities Settlement at a low interest rate and a 0% processing fee. What’s more, you get a breather from paying EMIs for first 6 months (at no extra charge).

Lets look at how a customer can save money using this option. A customer with 3 Credit Cards (standard interest rate of 2.99% per month) will have this payment schedule.

 

  Outstanding Balance/ Amount Due Interest Rate per month
Monthly Minimum Payment Total payment to settle the credit card
Credit Card 1
10,000 2.99% 500 15,000
Credit Card 2
15,000 2.99% 750 23,250
Credit Card 3
25,000 2.99% 1250 38,750

 
This customer will need to shell out AED 77,500 over 31 months to completely pay off these Cards . By transferring all Credit Cards to Al Khair Liabilities Settlement for the outstanding amount of 50,000 for 3 years, the customer will pay AED 63,470* thus saving AED14,030, a saving of almost 20%.

The conditions to avail this Loan are that your salary should be more than AED 5,000 per month and needs to get transferred to ADIB. ADIB current account is accessible online, through 416 ATMs and 70 branches across UAE. ADIB current account gives you the added advantage of winning back your salary in the monthly draw, or up to 24 times your salary in the annual draw. This draw is held for all salary account holders and every salary credit gives you one entry in the draw. So if you’re looking at consolidating all your credit cards, apply today.

Single Credit Card or Loan issue can be resolved with a Balance Transfer: If you see an opportunity for reducing payments, switch to the new credit card/ loan.

Credit Cards: There are opportunities available to transfer outstanding on a Credit Card to a New Credit Card and pay 0% interest for first 3-6 months. RAK Bank is offering a balance transfer scheme where the customer pays 0% interest for the first 3 months and only 2% for the balance term. Union National Bank is offering a Platinum Credit Card @ 0.54% per month (it’s the lowest interest rate Credit Card by far) for life.

Personal Loans: There are multiple Banks offering a Personal Loan from 7% onwards (if you transfer your salary to the same Bank). Visit our Personal Loans section to find a suitable Bank. In case you’re paying 3% more than the current interest rate, its time to shift the loan. Be sure to check the total cost of exiting and moving to a new loan with our easy to use “Personal Loan Comparison Calculator”.

Home Loans: Banks in UAE have significantly dropped the cost of home loans to boost new purchases in UAE property market. Existing owners of property can greatly benefit from these rates. If your mortgage was booked more than 3 years back, you can save substantially by switching to a cheaper home loan even after paying exit charges to the existing mortgage provider/bank. Many users have benefited from this plan. The "Home Loan Comparison Calculator" will show you the exact savings from a balance transfer.

Its actually that simple to reduce your payments and save more. For further suggestions or advise, write to us at expert@moneycamel.com

*  Interest rates start at 5.5% p.a. Assumed interest rate at 9% p.a. as a worse scenario in the example shown above.

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