The UAE is a country that attracts hundreds and thousands of expatriates every year. They throng the country looking for jobs and a secure future for their families. The UAE offers a lifestyle and opportunities that few countries the world over do. The lure of a good life is so strong that residents sometimes are tempted to take risks. More money is needed either to support their families, sometimes to set up a business or another venture and often many live beyond their means.
Then comes that deadly trap: Loans. It can become a vicious circle in time. A life lived on loans.
Most people approach banks and do manage to settle their loans though many have to face the force of the law for bounced cheques or they do not have the capacity to pay back. But the most frightening aspect of this business of loans are the sharks that swarm around those in desperate need of money.
Their modus operandi is to exploit and make as much as money as possible. They charge a very high rate of interest and even retain passports as a guarantee that the person will pay back. The borrower approaches a loan shark because he or she does not have access to a bank. Their salaries are low and because of various pressures, they cannot pay back the monthly instalment. The interest mounts and the person is constantly obligated to the loan shark.
Awareness is the key here. Residents must first realise that they should not take risks and must live within their means. More must be done to educate residents that if they have to borrow, they should approach legal institutions such as banks. There must be awareness and education that loan sharks are traps to hold residents’ hostage. That dangerous step of borrowing from them should never be taken.
