Expat in debt trap: When all is sold but still a big amount yet to be paid back

It’s easy to get carried away and get locked into Dubai’s flamboyant lifestyle, but if you aren’t wary the bubble will burst, leaving you borrowing into a vicious debt trap.

Indian expat KM (name changed) is a classic example of a dream gone horribly wrong.

She moved to Dubai, six years ago, from Goa, with husband, three children and her mother-in-law, with huge aspirations. And, initially, their dream was unharmed. Her husband earned enough and even bought a property in Goa, after borrowing from a local bank and an Indian bank.

But once the recession hit, it destroyed their lives.

Her husband’s company shut down, leaving him unemployed and forcing him to max out his credit cards to make ends meet. “In his desperation, my husband started using his credit cards to pay for the rent, groceries and school fee, and ended up incurring more debts,” recalled KM.

And when they were unable to pay the school fees, they were forced to send their eldest child to live with his grandparents in India.

During this time, the local bank filed a case against the husband over non-payment of the monthly installments, which had stopped after he lost his job. “We got through the criminal case, and even acquired a clearance letter from the court, but the bank filed a civil case,” she elaborated.

Her husband did find employment elsewhere and was even issued a company visa, but when they learnt about the civil case they asked him to resign. “They’ve kept his passport since and said they’d release it only after he submits a clearance letter from the court.”

The situation further deteriorated as his visa, which was not stamped on the passport, has since expired and he’s currently on an overstay. “He can’t even find another job because of this civil case, and he can’t even move out because of the travel ban.”