How to Get Out of Debt in Saudi Arabia: A Step-by-Step Plan | Giraffy
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How to Get Out of Debt in Saudi Arabia: A Step-by-Step Plan

If you’re feeling overwhelmed by debt in Saudi Arabia, you're not alone.

How to Get Out of Debt in Saudi Arabia: A Step-by-Step Plan

If you’re feeling overwhelmed by debt in Saudi Arabia, you're not alone. With the rising cost of living and easy access to credit cards, loans, and buy-now-pay-later services, managing personal finances has become a challenge for many. But the good news? There’s a clear path to regaining control of your money and living debt-free.

Here’s a practical, step-by-step guide tailored for Saudi residents to help you pay off your debts while setting yourself up for long-term financial stability.

Step 1: Know Exactly What You Owe

Before you can solve the problem, you need to understand it.

βœ… Make a list of all your debts, including:

  • Credit card balances

  • Personal loans

  • Car financing

  • Overdue bills

  • Buy Now, Pay Later (BNPL) installments

For each debt, note:

  • The remaining balance

  • Monthly payment

  • Profit rate (interest)

  • Payment due dates

Tip: Use a simple spreadsheet or a tool like Giraffy to track your debts and understand where you stand.

Step 2: Organize and Prioritize Your Debts

In Saudi Arabia, many people use one of two popular strategies to clear debts:

πŸ”Ή The Debt Snowball: Start by paying off your smallest debt first while making minimum payments on the rest. Once the first is gone, move to the next smallest. This keeps you motivated as you see quick wins.

πŸ”Ή The Debt Avalanche: Focus on the debt with the highest profit rate (interest) first to minimize the total cost of your debt over time. This saves you more money in the long run.

Choose the strategy that works for you. If motivation matters, pick the snowball. If saving money matters more, go for the avalanche.

Step 3: Create a Tight Budget

Now that you know what you owe, it's time to control your spending.

βœ”οΈ Cut back on unnecessary expenses (such as frequent dining out, luxury purchases, or subscriptions you barely use).

βœ”οΈ Focus on the essentials: housing, utilities, food, and transportation.

βœ”οΈ Direct any extra income toward your debt repayments.

Pro Tip: Giraffy can help you compare the best mobile, internet, and banking deals in Saudi Arabia, so you don’t overpay on monthly services.

Step 4: Increase Your Income (If Possible)

Many Saudis are turning to side hustles or freelance work to boost their income and pay off debt faster. Consider:

  • Part-time remote work

  • Freelancing online

  • Selling unused items

  • Providing tutoring or services locally

Every extra riyal helps reduce your debt.

Step 5: Negotiate With Your Lenders

Don’t be afraid to contact your bank or financing provider. In Saudi Arabia, many lenders are open to:

  • Reducing your profit rate (interest)

  • Offering payment deferrals

  • Consolidating your debts

  • Restructuring payment terms

Be clear, polite, and honest about your financial situation. It’s better to negotiate than to fall behind on payments.

Step 6: Stop Taking On New Debt

This might sound obvious, but it’s one of the most common mistakes people make. Pause all credit card use and avoid BNPL purchases until you're back on solid financial ground.

Step 7: Stick to Your Plan

The hardest part of paying off debt is staying consistent. Remember:

  • Track your progress monthly.

  • Celebrate small wins.

  • Keep your long-term goals in mind (such as saving for a home, Hajj, or your future family).

Final Thoughts

Paying off debt in Saudi Arabia requires a mix of discipline, strategy, and awareness of the financial tools available to you. By taking it step by step, using platforms like Giraffy to optimize your spending, and staying committed to your plan, you can become debt-free and financially empowered.

Start today. Your future self will thank you.