How to Get Out of Debt in the UAE – The Rocket Plan to Break Free

Debt can feel like quicksand,  the harder you struggle without a plan, the deeper you sink.

It can also feel like gravity, invisible but relentless, always pulling you back no matter how hard you try to move forward.

The challenge is real: An average resident in the UAE, with active credit cards carries around AED 42,000 in debt, and nearly half say their income isn’t enough to cover repayments.

Even more worrying, 60% spend a quarter or more of their salary just servicing debt(Fast Company Middle East, 2023).

The good news?

🚀Just like a rocket can escape Earth’s pull, you can break free from debt’s grip — if you fire the right engines in the right order.

But before we fire the engines, we need to understand what makes debt’s pull so strong in the UAE — and why it’s so easy to get caught in its orbit..

How Debt Pulls You In? – And Why Escaping Takes Power

Debt in the UAE isn’t just about bad habits. It’s a mix of lifestyle choices, easy access to credit, and the high cost of living in an opportunity-rich country.

Banks and retailers make it simple to spend more than you earn: generous credit card limits, personal loans, and “interest-free” installment offers are everywhere.

They make you feel richer that you actually are...

For many new expats, lifestyle upgrades; a better car, bigger apartment, more holidays, happen fast, often without a working budget or a spending plan.

That’s where the gravity kicks in. Debt behaves a lot like Earth’s gravity: falling in is effortless.

A few impulsive purchases, an unexpected expense, or swiping your card “just for now” can set you on a downward path. Interest rates are the gravitational pull, making it harder to slow down once you’ve started falling.

And the numbers show just how strong that pull can be:

• By late 2024, UAE household debt topped USD 457 billion — more than 100% of GDP (CEIC Data, 2024).

• Credit card balances alone grew by 8.3% year-on-year in 2024, showing how quickly high-interest debt can pile up (CEIC Data, 2024).

Escaping that pull is like launching a rocket.

Minimum payments are like tiny thrusters, they burn fuel (your money) but barely move you upward.

To break free, you need a powerful, focused push early on:

• cutting expenses
• boosting income,
• and directing as much as possible toward high-priority debt.

Once you’re in “financial orbit,” your energy can go into savings, investing, and building wealth — instead of just fighting to stay afloat.

Here are the 7 steps to pull yourself out of Debt.

Step 1 – Know Exactly What You Owe

Every rocket launch starts with calculations.

You can’t escape gravity until you know your mass and trajectory — and in debt terms, that means knowing exactly what you owe and how much you are paying as interest. 

List all debts — credit cards, loans, car finance, and any personal borrowings. For each, record:

• Balance

• Interest rate

• Minimum monthly payment

• Due date

💡 Pro tip: Use this simple excel sheet to list and know your debt.

Step 2 – Choose Your Debt Repayment Strategy

This is your engine choice. The two proven rocket boosters for escaping debt’s pull are the Snowball and Avalanchemethods. Both work — the right one depends on whether you’re motivated more by quick wins or maximum savings.

1. The Snowball Method – Quick Wins First

1. List all debts from smallest to largest balance (ignore interest rates initially).

2. Pay the minimum on all debts except the smallest.

3. Put every extra dirham toward clearing that smallest debt.

4. Once it’s gone, roll that payment into the next smallest debt.

Why it works:

• You see results quickly, which boosts confidence (Harvard Business Review, 2016).

• Perfect if you need visible progress to stay committed.

2. The Avalanche Method – Save the Most on Interest

1. List all debts from highest to lowest interest rate.

2. Pay the minimum on all debts except the highest-interest one.

3. Throw all extra money at that high-interest debt.

4. Once it’s gone, move to the next highest rate.

Why it works:

• You pay less total interest overall (Investopedia).

• Best for disciplined planners who value long-term savings.

💡 Pro Tip: Just like a rocket needs sustained thrust to escape Earth’s gravity, your first few months of intense repayment will determine how quickly you break free.

Step 3 – Cut Off the Debt Supply

You can’t launch while more weight is being loaded onto the rocket.

• Lower your credit card limits to avoid temptation (The National News, 2022).

• Stop using credit cards for discretionary spending. Switch to cash or debit card.

• Unsubscribe from promotional emails and remove saved cards from shopping apps.

Step 4 – Free Up Cashflow with Smarter Spending

Every extra dirham is like extra fuel. Use the Expat Advantage Budget (EAB) to:

• Plan your monthly spending in AED

• Track where your money goes (needs, wants, savings, luxuries)

• Spot extra cash to put toward debt

• View your numbers in multiple currencies

📥 Download your free EAB template here

Step 5 – Negotiate and Consolidate

Lighten the load before lift-off.

• Ask your bank for a lower interest rate or to waive late fees (Khaleej Times, 2023).

• Consider a debt consolidation loan to combine multiple high-interest debts into one lower-interest payment — but only if you commit to not adding new debt (Gulf News, 2023).

Step 6 – Build Your Emergency Fund

Once you’re out of the atmosphere, you need stabilisers to stay in orbit.
Set aside 3–6 months of expenses so unexpected costs don’t drag you back into debt.

Step 7 – Plan Beyond Debt – Build Wealth

Escaping gravity isn’t the end — it’s the beginning of exploration. As a financial advisor in Dubai, I help clients:

• Set aggressive savings goals

• Invest for long-term growth

• Create passive income streams that work even while they sleep

Ready to Launch Your Rocket Plan?

Don’t just dream about being debt free — start fuelling your engines today.

📅 Book your free Debt Strategy Call here and let’s create a Rocket Plan that works for your life in the UAE.