Are you having trouble keeping track of different financial responsibilities and payback schedules while avoiding asking for aid from friends and family? Then a Debt Consolidation Loan might be a good fit for you. A Debt Consolidation Loan is a Personal Loan obtained to make repayments towards multiple dues. It is a tool that simplifies your existing loans and credit card dues. This can happen in one of two ways: either the lender pays off the borrower's obligations directly or the borrower pays off the lender's debts indirectly. 

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Aefinance may be able to assist you in consolidating your debts if you are in a bad financial situation 
and are struggling to manage several payments with higher interest rates to various creditors. By 
consolidating all of your loans into a single personal loan, you may save money on interest payments 
while also having only one monthly payment to worry about.

A Debt Consolidation Loan has a number of characteristics and advantages:
• Payments are lower each month.
• Having more disposable income
• Reduced interest payments during the course of the loan's life
• A higher loan amount of up to AED 1 million is available (depending on the bank).
• Payments can be deferred for up to 90 days. 

You may put the additional income to good use for all of your anticipated and unanticipated needs: 
Consider the following scenario:
• Make plans for a trip with your family or pals.
• Renovate your residence
• Make a magnificent wedding plan.
• Invest in your own or your child's education.
• Attend to medical requirements.
• Invest in profitable ventures.
• Interim Requirements
• Purchase of real estate in your native country or abroad*
* According to UAE Central Bank guidelines, a client who takes out a house loan in the UAE for a UAE 
property cannot utilise a Personal Loan to pay for the down payment.

Yes, you must transfer your paycheck to a bank in order to acquire a Debt Consolidation Loan for 
Expatriates. Aefinance will assist you in your endeavour.

You can receive it under 'New to UAE' or 'New to Employer' if you have been with your present 
employer for less than 6 months or if you have just migrated to the UAE.

Processing fees and insurance fees, as per the schedule of charges, are the upfront costs associated 
with a Debt Consolidation Loan. 

Our interest rates are competitive, and they are calculated on a decreasing balance. Please contact 
our Bank representative for additional information on this. 

You can obtain the following additional perks if you use Aefinance to secure a loan:
For personal loans higher than or equal to AED 25,000, a zero balance current account with a cheque 
book and a debit card is available.
• A large ATM and branch network is available to you.
• Access to award-winning resources Online and mobile banking services are available.
• Special campaigns and bundled offers
• Option to postpone payments

The first EMI payment is tied to your salary credit date, and it must be made within 90 days of the 
loan disbursement date. 

Your credit report will show that you settled a debt rather than paying it off in full for as long as the 
individual accounts are reported, which is normally seven years from the date the account was 

• Pay more than the minimum. 
• Pay more than once a month.
• Pay off your most expensive loan first. 
• Consider the snowball method of paying off debt. 
• Keep track of bills and pay them in less time. 
• Shorten the length of your loan.
• Consolidate multiple debts.

Even if your debt management plan prohibits you from establishing new credit cards, you will not be 
in violation of your agreement if you take out other sorts of loans. If you match the underwriting 
criteria, you can receive a mortgage while on a debt management program. 

You're taking out a new loan when you consolidate your credit card debt. Consolidation refers to the 
process of combining your numerous debts, such as credit card bills and loan payments, into a single 
monthly payment. Consolidation may be a strategy to simplify or cut payments if you have many 
credit card accounts or loans.

Keep your credit card accounts open once you've consolidated your debt, but stop using them 
completely. You may put them away in a secure place or even chop them up. Maintain a 0% balance 
on your credit accounts, regardless of how you go about it.

Debt settlement, on the one hand, can help you reduce the total amount of debt you owe, but debt 
consolidation can help you reduce the total number of creditors you owe.

The bank may file a lawsuit against you for default, utilise the security check you supplied when you 
applied for the loans, and impose a travel restriction that will result in you being detained at the 
airport and preventing you from leaving the UAE.

If you don't pay your personal loans or credit card bills on time, you might not be able to travel 
outside the UAE. Furthermore, depending on the personal loan agreement you signed, the lending 
bank or financial institution may bring a legal lawsuit against you to recover the remaining amount.

The person who wrote the check might be sentenced to one to three months in prison. If the loan 
defaulter does not pay at the police station within 20 days, the case is sent to civil court.

In general, the lower your credit score, the greater the interest rates you'll be offered on loans. You 
must fulfill the lender's minimal requirements to qualify for a debt consolidation loan. Although 
some bad-credit lenders may accept scores as low as 580, this is usually in the mid-600 area.

By combining all of your debts into a single loan, a debt consolidation loan can alleviate both 
difficulties. This lowers the number of fees you have to pay and makes repayment much easier. A 
longer loan term entails paying higher interest throughout the course of the loan.

A debt consolidation loan may be able to assist you in repaying your auto loan and avoiding 
repossession. Remember that merging this debt to a higher interest rate (even if the monthly 
payments are lower) would almost certainly result in you paying more in interest over time.

Credit score harm, fees, the likelihood of not receiving low enough rates, and the threat of losing 
whatever collateral you put up are the most significant hazards involved with debt consolidation. 
Another risk of debt consolidation is that, if you're not careful, you'll end up with more debt than 
you started with. 

Debt consolidation has a number of drawbacks, one of which is that it is not available to everyone. If 
you have bad credit, you will most likely be denied the loan. Even if you do, if your credit score is 
below 700, you may not be eligible for the best interest rate.

Can I consolidate my debts without cancelling my credit cards? Yes, however it depends on your 
circumstances. You probably won't need to terminate your existing accounts if you have strong 
credit and a little amount of debt. This limitation does not apply to balance transfers or debt 
consolidation loans.

It's not simple to negotiate a debt settlement on your own, but it can save you time and money 
compared to engaging a debt settlement firm. You negotiate directly with your creditors in order to 
settle your debt for less than you owe using do-it-yourself debt settlement. 

Debt settlement, on the one hand, can help you reduce the total amount of debt you owe, but debt 
consolidation can help you reduce the total number of creditors you owe.