Jail only option for 11% in bank debt poll

More than two thirds of the respondents to the Emirates 24|7 Poll said they were in debt. However, the situation seems to be under control for a vast majority of them, or so they claim.

More than 68 per cent of the respondents admitted that they were in debt. However, 47 per cent of all those polled - almost half - said their debt was manageable and under control.

A significant 11 per cent of the respondents indicated a bit of an issue, saying that they were negotiating with banks over their debt.

Another 11 per cent said they were deep in debt and saw no way out except going to jail.

The poll was conducted after the publication of a report, which said 85 per cent of the UAE residents were in deep debt. The Emirates 24|7 Poll matched the findings but showed a lower level of people in debt.

The previous survey, by Dubai-based debt management and credit counselling agency ISDM, suggested that 75 per cent of the debt-ridden residents are males. Filippinos, Indians, Pakistanis and South Africans emerged the highest by nationality.

Credit card balance debt was a major issue with banks here charging as high as 24 per cent or more per annum as interest.

This was an issue that was also highlighted in the Emirates 24|7 readers comments. "The figure of 24 per cent [in the ISDM survey] per annum interest rate is incorrect. Majority of the banks in the UAE, who enjoy a large portion of the credit card market share, charge an interest of 2.99 per cent per month, which translates to an annual interest rate of around 36 per cent per annum. Now that is what you call a world record," says Salman.

Comments from readers laid the blame for the situation on the banks. "Banks provide easy credit cards to allure innocent people. Is it good for banks to put a ban or jail the 'valued' customer?" asks Faisal.

"Banks loot the hard earned money. Nowhere in the world do banks have the right to jail people," says a reader who calls himself Good Man.

In defence, 'Anonymous', perhaps rightly named, says: "Why should banks be blamed. A lifestyle based on debt should be blamed on individuals."

A fact that can bring cheer to residents is that a substantial 32 per cent of the respondents claimed never to spend more than what they earned.

Poll: Reports say 85 per cent of residents are in debt. Are you?
Yes, but it is manageable - 47%
Yes, I am negotiating with the banks - 11%
Yes, I see no way out except jail - 11%
No, I never spend more than I earn - 32%
 

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