Early Signs of a Debt Trap UAE Residents Miss

Are You Caught in a Debt Trap? The Early Signs UAE Residents Miss
Alexander Varghese on the small habits that quietly signal financial stress | Khaleej Times
As BNPL, credit cards and salary-linked loans make it easier to spread out spending, Khaleej Times examines how UAE residents fall into debt traps without a single major misstep. Alexander Varghese, Sales Director of Alternate Channels at Continental Group, explains that debt usually builds through small, split payments that accumulate unnoticed rather than one large decision, and identifies using BNPL for essentials like fuel or groceries as one of the clearest early warning signs, since it signals income no longer covers basic living costs. He also flags running multiple overlapping BNPL plans and income falling short of servicing existing debt as red flags that tend to worsen quickly if ignored. Varghese offers a practical benchmark: once more than 25 to 30 percent of salary goes toward debt repayment, financial flexibility is shrinking and risk is rising, and cautions that relying on additional credit to cover routine expenses is a sign debt has become unsustainable.