Spending lavishly on credit cards and struggling to repay loan are the universal personal finance problem that happened around the world. In Qatar, where government subsidized citizens with free healthcare and generous salaries funded by rich gas reserves, three quarter of Qatari families are in debt with most owe more than $68,700 USD. These huge personal debt raises worries in Qatar as the welfare state is becoming less generous especially with the downturn in the energy industry. Qataris are borrowing enormous sums to finance lifestyles they cannot afford. “You cannot have a bad watch on your wrist, a second-hand car, or an old telephone. You need to have the latest models so as not to appear ‘poor’,” said Mohammed al-Mari, a former traffic policeman who works in the charity sector. “People end up pretending they have money just to keep up. There is this social pressure.” Keeping up with the Joneses can spread to any part of the world where people lack the understanding about personal finance. (reuters.com)
Huge Personal Debt Raises Worries in Wealthy Qatar
