Question

complete the problem and solution paragraph below, include 2-3 causes and 2-3 solutions for them.

remember to use phrases like: An important solution is ... A second cause of the problem is... a possible solution is ... also, support your causes and solutions with examples, details,explanations (to be specific, in other words..) don't forget to write a concluding sentence begining to sum up,... write need to write about 175 words or more

many people in the UAE have debts which they cannot repay. what are some of the causes and solutions of this problem?

Answer 1

The most important cause for the people of UAE suffering from debt trap is that they purchase credit cards and personal loans hoping to overcome the difficult financial circumstances. A second cause of this problem is that the financial institutions charge huge rates of interest from the loan consumers. Due to this problem, people of UAE are spending about 1/3rd of their hard earned income on debt repayments. Another cause for piling up of debt is that people pay only the minimum amount which is due on their monthly installments.

An important solution to this problem is that consumers should get rid of the credit cards as soon as possible and must not take further loans to pay the previous lenders because this can put them into a debt-trap. The consumers who have a very serious debt problem can probably consult a financial advisor and make plans with their banker. Moreover, if there are any savings with the consumer, they should invest in risk free and reliable options like bonds.

A safe practice which should be followed by the residents to avoid debt-trap is that if they borrow funds, then the repayments on them should never be more than their regular income or it can be said that the repayment of debt should not exceed ten percent of the monthly salary of the person.