Planning a budget, taking into account all of your income and outgoing expenses, can be one of the first steps to getting control of your finances.
Managing your money: 9 steps to financial wellbeing
Financial fitness, or wellbeing, is about feeling comfortable and in control of your financial position. It means having the knowledge and confidence to make the most of your money.
Plan your spending
Keep track of your spending
Spend wisely
Avoid finance facilities for essential expenses
Save money
Find the best deals
Choose the right financial products
Prepare for the unexpected
Plan for the future
Priorities Consumer Debts
Prioritising your debts may help you feel more in control of your money. You could start by drawing up a budget that looks at your spending and assesses how much you have available to repay each month. If you can, look at any areas where you could cut back to free up more money.
Once you know how much you have available for payments, you may want to make a plan using one of the methods below..
Method 1 – Pay off the most expensive debt first
Typically, a cost-effective option is to repay the debt with the highest interest rate first, as it’s charging you the most to borrow the money. List out your debts in order of interest rate, going from highest to lowest. Priorities paying the debt at the top, working your way down the list over time.
Method 2 – Pay off the smallest debt first
While it may not be the most cost-effective method, some people prefer to pay off their smallest debts first so they can reduce the number of debts they have to think about. If you feel this may suit you, list out all your debts with the smallest debt at the top and the largest debt at the bottom. Priorities paying the debt at the top, working your way down the list over time.
Method 3 – Debt consolidation
If you’re finding juggling multiple debts too stressful, a debt consolidation loan can be a way to simplify your repayments and get back on track. A debt consolidation loan gives you the following benefits:
By effectively transferring all your debts to one bank, you can simply make a single monthly payment instead of worrying about several creditors. Debt consolidation does not only help by making a single payment, it also helps effectively to reduce the APR (Annual Percentage Rate) that you have to pay for. You have two possibilities here. Ring the bank with which you have a good track record – typically your salary transfer account. Alternatively, discuss debt consolidation with the bank where you have the largest outstanding. It’s worth remembering that you should only agree on a payment you can afford.
Reach out for help
If you’re struggling to make ends meet it can be a good idea to speak with friends and family, as well as trained professionals about your situation. It may feel difficult but starting the conversation with someone you trust may help relieve some of the pressures you may be feeling.
Being open about your finances with a close confidante garners emotional support, helps to reduce temptations, and also promotes accountability, helping you stay on track.
Financial Institution/Bank
Your Financial Institution /Bank may have a team that’s able to provide you with assistance and also look at your options if you’re struggling to meet repayments on your debts.
If you’re a FAB customer and you’ve missed a loan, or credit card payment, or you're concerned about your current overdraft position, or you're worried about missing one in the future, we can help. Call our team of credit counselor on 600 52 5529 to get a helping hand.
Monday - Thursday | 9:00am - 5:00pm | |
Friday | 9:00am - 12:30pm 2:30pm - 5:00pm |
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Saturday | 9:00am - 1:00pm |
Mail us on Debtcounsellors@bankfab.com
Details on the Fees
All fees and charges will be as per agreements and published guidelines on the FAB Website.
Get in touch
Need more help?
Contact us anytime for further assistance or check out our FAQ page for more information.
Personal Banking customer within UAE | Personal Banking customer outside UAE | ||
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600 52 5500 | +971 2 681 1511 |
Commercial Banking customer within UAE | Commercial Banking customer outside UAE | ||
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600 52 2235 | +971 2 499 6700 |