Consumer Debt In U.A.E. Reaches $95,000 Per Household

Consumer debt in the U.A.E. continues to climb as Arabian Business reported that each household in the country has reached $95,000 in debt ($114 billion in total,) which was cited in new research from Strategic Analysis.

The study shows that 48 percent of the U.A.E. participants said their monthly income was not enough to make debt repayment, and 60 percent said 25 percent of more of their income goes to paying debt. Moreover, Strategic Analysis indicated that $12.7 billion in checks bounced back in 2012, which was actually 15.3 percent lower than the previous year.

Arabian Business reported consumer debt problems are largely due to poor lending infrastructure in the U.A.E., and the country’s high interest rates on credit cards. On average, U.A.E.’s credit card interest rates are 20 percent higher than those in the UK.

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