A Debt-free Life is the New Happiness

For many people these days, a debt-free life is the new happiness. Why? Because inner peace is important to avoid stress, and stress is a silent killer.

Before the worst recession in the history, it was easy to get approved by banks for personal loans and credit cards. One can have as many credit cards as possible. A decade has passed, but until now there are still many debtors who borrowed money in that period, who are still in shadow, in pain and sadness.

In a place where commercialism greatly boosted by strong advertising strategies coupled with perks from lending institutions, the temptations to buy this and that is irresistible. But for many overseas workers particularly Filipinos, it is this very high expectations of the family, relatives and friends which is a high compelling force for them to seek credit facilities. Most of the times, it is to meet the basic needs (foods, clothings, shelter and education) and medical, or worse burial. They think that they are always strong, feeling Superman or Wonder Woman, who could win all battles at all times.

When time comes that they are behind their rent, cannot eat the right foods at the right time, and collectors keep calling and threatening them, it is when the bad days start. The circle of relatives and friends gets smaller and smaller. The freedom to move is limited. There are anxiety attacks and depression, affecting overall wellness and productivity. If this happens to many people on large scale, this is alarming because the wealth of every nation is the total wellness of its people and residents.

We have evolved over time. Many unimaginable things are created by intelligence of men with the help of technology. But why debt problems cannot be addressed to properly? How are these solved? How can people live a debt-free life and be happy?

There are many financial literacy seminars. Most speakers discuss topics about right saving and investment tips. Why? Because after the seminars, they will promote their businesses of insurance packages and / or real estate.

The initial step to tackle this is to generate revenue, perhaps look for better paying jobs. But here if you have debts unpaid for a long time and there is a complaint lodged then visa will not be released, unless the employer agrees to pay the amount in writing. In such a condition, the debtor-job applicant gets vulnerable.

The next step is to find other livelihood opportunities but here things are strictly regulated so they must be licensed. You cannot just cook foods and sell to other people as the government wants to ensure that everybody is safe. You cannot just wash the car where they are parked to ensure safety of motorists and passers-by, at the same time, to protect businesesses with same activity. You cannot just organize an event to collect fees from participants as there are licensed event organizers. You cannot promote other company's items as your own employer will be fined a hefty amount if you are found doing so and you may be jailed then finally get deported.

You can do freelance jobs, yes, but you must get a freelancer visa. You can work in another company as a part-timer but you must get proper no-objection certificate the employer and sponsor, and with approval also of the authorized government agency.

The next step is to get the support of the family, relatives and friends. Sad to say, this is a very challenging step as you will come to realize many things in life. One of the sad realities? You will know their true colors when you have nothing but your leap of faith. You can sacrifice a lot for them, but they cannot do the same for you when needed, even if they have so much in life and you are the one who provided them with bridge, in a way, to help them get through and to the top. You cannot just raise funds from other people for this purpose as this is like begging, and it is not allowed.

Another step is to ex-deal things. Since you do not have money to buy some things you require or pay your debts, you can exchange your services instead. Sometimes I am wondering this -- as they say, money is the root of all evils. What if we go back to barter mode for some transactions? I saw an online platform for swapping things. But how can we be sure things are authentic or not stolen? And if foods, how safe are they?  There is a couple who want to live a mortgage-free life so they stay in a mobile truck. They have no land so they ex-deal their farm custodianship services with a place in a rich man's warehouse where they can park their mobile home.

What if banks do the same? Come up with a hub, real and virtual, open for their debtors who are qualified for bank-related services, so they can reduce their debts, instead of paying cash to newly recruited staff?

A bold step for debtors is to negotiate with banks directly, either for debt consolidation (salary transfer is required and 50% DBR or debt-burden ratio will be considered) or debt restructuring. I am not sure if requesting banks to to take a payment break will be allowed while in a very tight condition to have foods on the table and roof over the head. I am not sure also if one can reclaim some fees and charges to help reduce the account payables. Most debtors have fears because of harassment of some credit and collection companies, which can be very, very traumatic. Some emotionally weak people commit suicide. My friend cannot sleep because of that and she was offered a debt-restructuring scheme with a very high interest and a requirement for a co-maker. The interest rate for old loan is 3% per month so it is 36% per year.

Others seek the services of remedial consultants who will handle negotiation with the banks for their best protection and interest so they can sleep peacefully at night.

With the new visa rule in the UAE mandating return of AED3K bank guarantee per worker, it is estimated that AED14B will be flushed out from the banks unless the companies deposit them back but for sure they will utilize big chunks of that for their operations, which over time will help in the economy. Some banks will merge to respond to a more challenging time. The increased length of visa period for some categories, and hopefully for all, is timely as debtors can pay in a longer time with smaller amount of payable per month.

One step to reduce payables is to look for lending entities with cheaper service / interest rates but when one is already in debt crisis, it is difficult to get loan approval.

My personal opinion is that it will help a lot if the lending institutions will be open to account restructuring of debt-trapped people's (wherever they are in the world) -- without additional interest and / or fines, payable in longer time, or with an option to pay a very minimal interest per month and principal payback after some time, to remove the clog and make things easier for them to find ways to work or generate revenue.

Some government authorities offer job opportunities to those qualified people who have financial problems. I remember the story of my friend married to a German. When there were massive layoffs, the government immediately absorbed the jobless people, one was her husband -- an electrical engineer, for government job posts. They survived and thrived.

Perhaps another way is to have the debt ordeal stories published, like what I read in local newspapers and great people stepped up anonymously, and save lives. God bless them. But I know only few troubled people will take courage to do that. Some philantropists free indebted persons in jail. I wish I were rich to help people while the problems were still in the bud stage.

Having fears is normal when one is debt-trapped. Overcoming these fears can be liberating. Why there are fears? Because many collectors normally talk about the threats and harassment instead of the encouraging ways to figure out the right solutions out of compassion and mercy. Afterall every company has the social responsibility to be basically humane.

Others organize communities of debt-trapped people and they help one another in terms of moral support, money-saving tips and money-generating opportunities sharing.

As of this writing, when I Google-searched the phrase 'happiness summit', it showed 34,700,000 in 0.40 seconds. How many of the happiness events cover debt problems leading to unhappiness?  How many emotional intelligence speakers focus on this issue and help design strategies for victims to be victors by improving their EI?  How many HR managers conduct a survey to check financial health status of their employees and offercounselling, instead of terminating those who are regularly called by collectors? How many financial gurus extend debt-handling mentoring on a one-on-one basis for free? How many believe they can fake 'happiness' until they can make it, as a saying goes -- whilst in the shadow of debts?

Without knowing it, many debtors experience some mental health issues but they are afraid to come out in the open. They fear that people surrounding them will no longer respect them, they will lose job, denied of opportunities, or will be ejected by their families. Normally they carry this heavy burden of guilt for making bad decision. Bad or good, this is irrelevant now.

A debt-free life is the new happiness. Lucky or blessed are they who find support from their primary families but many do not.  The road and the time may be long to reach the debt-free point, and be happy. One needs to passionately magnify hope and do something with discipline to look forward to that.
ppiness is the primary objective of Dubai's ongoing smart transformation. One of the goals is to provide world-class services to the people of UAE with the goal of contributing to their happiness.
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Photo credits:  Pixabay