Debt and loan consolidation entails taking out one loan, enough to pay all your outstanding ones due to other sources (credit cards, car loans, personal loans, and so on) and to secure a lower interest rate, a fixed interest rate or also for the convenience of servicing only one loan.
It’s relatively easy to borrow money as a personal loan in Dubai. You will need a job with a regular salary or several months, at least, of company accounts and bank statements if self employed. Maximum loan amount will be up to 10-24 times your monthly salary/income.
If you have a banking relationship with an offshore bank, or a bank in your home country, you might be able to arrange a loan with them to pay off your debts in Dubai. If you are in trouble financially, consider cutting up your credit cards or at least take them out of your wallet or handbag so you’re not tempted to use them.
PDF download of new Central Bank rules and fees at www.centralbank.ae/en/pdf/notices/RegulationsRegardingBankLoans.pdf
Be careful of agencies advertising Debt and loan consolidation services in Dubai and the UAE. Often the only reliable and safe way to consolidate your loan in Dubai is by borrowing personal one from your bank in the UAE. There are both foreign and local banks in Dubai and the UAE ready to look after your money, or lend you someone else’s money.
There is a good chance of ending up even in deeper trouble since those agencies may either take a fee and disappear; in the worst case, a Debt and loan consolidation company might take a security cheque off you, promise to deliver funds but renege and attempt to cash in your security cheque anyway. Bouncing a cheque in Dubai and the UAE is an offence that can land you in jail, and this is not one of those theoretical laws that is often ignored.
Really, the only safe way is to either negotiate some sort of payment system with the bank, and/or borrow funds from a trusted source that also trusts you to pay it back. Or sell something if you have some assets to sell.
A bank in Dubai and the UAE might consolidate several loans into one for you and arrange repayment terms. This is especially desirable for those with outstanding credit card debts since the interest rate on credit cards is often upwards of 30% per annum, but on a personal loan might be 10-15%, or perhaps even lower if you’re lucky.