Many people take personal loans, which they consider an easy way to meet their financial needs. However, this tendency often leads people to serious financial problems and debt, something that is further exasperated by people not knowing how to get out, Al-Riyadh newspaper said in a recent report.
An official in charge of marketing loans at a local bank, while requesting anonymity, said a large number of citizens take loans that they then struggle to repay. “Most of them take loans to spend on holidays, while others want to buy expensive cars. There are others who take loans to build or renovate houses,” he said.
He added that many newly appointed employees in both the government and private sectors approach banks to secure loans immediately after completing the required period of eligibility that ranges from three months to one year. The loans are usually taken to buy cars or pay for weddings.
There are many young Saudis who are in debt after taking loans to get married. Ahmad, 30, said he never thinks of ending his marriage because of the huge debt he incurred to get married in the first place.
Ahmad took a loan to pay for his marriage and meet day-to-day living costs. “The huge expenses incurred in getting married and the subsequent cost of living left me in a precarious financial condition. Adding fuel to the fire, the recurrent increase in house rents has also resulted in an accumulation of debts,” he said.
Inaam, an employed young Saudi woman, tells a different story. She was forced by her husband to take loans from several banks. Her husband also used her credit card to withdraw cash.
“I’m now forced to spend my entire monthly salary on paying off bank loans. My husband has used this money for extravagant holidays and other supposedly important engagements,” she said.
“He continued squeezing me and forced me to take another big bank loan on the pretext of opening a new establishment that would bring us a regular income. Then he divorced me and left me with huge debts,” she added.
Yahya Al-Qalaf, a social researcher, said many Saudi families are now entangled in debts and are unable to pay them off. “Most of them don’t know how to plan financially. They spend huge amounts of money on posh marriage parties and buying luxury cars. It is because of this that a large number of young men are in debt,” he added.
