Debt Remedial Defined

In essence, Debt Remedial is extreme ‘Value Creation’.

Many Clients are unclear about the actual definition of Debt Remedial, so clearly defined it is…

“An adjective. affordingremedy; tending to remedy something. intended to correct or improve one’s skill in a specified field: or to effectively remedy one’s situation, whatever that may be, to a more improved, amicable and acceptable skill or situation”.

In a nutshell our EFFRS definition of ‘Debt Remedial’ is easing our Clients burden of their ability to sustain their monthly payments/EMI’s *Equated Monthly Installments on their current debt liabilities, avoiding future default and finally legal action.

There are 4 Core Solutions when considering Debt Remedial:

  1. Consolidation of all Debts/Liabilities.
  2. Once Consolidated, then Restructured with 1 (One) EMI payable monthly for all.
  3. As per the UAE Central Bank Regulation, this EMI should not exceed 50% (Fifty Percent) of the Client’s Monthly Income.If it does, they will face problems in the future.
  4. One-Shot Settlement – Settling the full liability in 1 (One) Payment.
  5. A Buy-Out from an external Bank, buying out all of the Clients current liabilities, where in Option 2, the same outcome will be for the EMI.
  6. For Corporates and SME’s there are other variations of solutions, but it is reviewed by Banks on a case to case basis, with key Risk Factor Policies evaluated and taken into consideration, also applied.

From inception of EFFRS launching Debt Remedial into the UAE in 2010, it was very clear that this is a unique Concept that would ease the pain of Debtors, including the Bank Representatives approach and attitude towards indebted Clients facing a Debt-Crisis, which is why EFFRS implemented Soft-Skill Tool-sets, including a neutral environment which fosters ease and peace of mind for the Client, when they meet to discuss an amicable outcome for their debt situation.

It is very clear that this is the most effective method since Banks had started implementing Debt Remedial from approximately mid-2015, where they progressed to initiate Remedial Departments, however, there is still much room for improvement and more flexibility, whilst protecting the Banks Assets.

We look forward to your reach and assure you of our utmost attention and service.

TEAM EFFRS