UAE official warns about risks of borrowing, consumer debt

Burden can have psychological, social or economical burden, leading to financial devastation



by

Ismail Sebugwaawo

Published: Thu 30 Jun 2022, 12:05 PM

A judicial official warned about the dangers of consumer credit and outlined the impact of uncontrolled borrowing on individuals, families and society.

The burden can have psychological, social or economic pressures, leading to financial devastation, family disintegration and corruption.

During a lecture entitled "Risks of Borrowing", organised by the Abu Dhabi Judicial Department (ADJD), Dr Turki Al Qahtani, Senior Family Counsellor at the ADJD, addressed several points, including the effects of unbridled borrowing by individuals.

Speaking about the specific nature of consumer loans, the lecturer said: "These loans are intended primarily for consumption and not for production, and that they exceed the individual's financial capacity, in addition to being linked to ephemeral social expenditures. This type of loan is motivated by the need to cover the difference between a low or limited income and increasing expenses."

He explained the reasons for borrowing and the characteristics and motivations of consumer loans, stressing the importance of money in people's lives and financial management skills and its impact on the stability of the family.

Dr Al Qahtani explained that social stability depends on the ability to provide basic needs in terms of goods and services, as the economic dimension clearly impacts the perception of security and psychological stability.

The lecture aimed at promoting the dissemination of legal culture among members of society as a contribution to maintaining security and stability.

ismail@khaleejtimes.com


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