Paying off Your UK Debts

[pjc1973 0]

Is there anybody out there who has experience of dealing with debts (bank loans, credit cards etc but not mortgages) that you still owe in the UK but are now dealing with from the US post K1 visa?

I have a number of debts with UK banks and UK credit card companies which unfortunately I will not be able to pay off in full before I move out to the US to marry and then settle so is there anyone else out there in the same boat who has any information about how to handle such an issue? In total I probably owe around £10K.

Do I keep a UK bank account open and wire enough funds back every month to cover the outgoings until my debts are paid off? I have a poor credit rating in the UK so wouldn't get approved for another loan to pay off all my debts in one go (not that I would want yet another loan) so that is not really an option. Sending back money from the US to the UK is also expensive business is it not? I am relying on getting a good job in the US in order to continue paying back my debts in the UK which is another factor.

Any advice gratefully received.

Cheers

Pete

[kath58 0]

HI,

WHEN I LEFT THE UK IN APRIL I HAD TO HAVE BANK CLEARANCE FROM THEM. I HAD TO PAY OFF MY CREDIT CARD AS NEEDED LETTERS FROM THEM HOW MUCH I'M WORTH FOR IMMIGRATION PURPOSES.

ANYHOW TO YOUR QUESTION I STILL HAVE TWO ACCOUNTS IN THE UK. ONE CURRENT THE OTHER A SUPER SAVER ACCOUNT. I STILL HAVE MY CREDIT ACCOUNT WITH THEM WHO I PAY OFF MONTHLY USING ON LINE BANKING. ALL MY STATEMENTS ECT GO TO MY FAMILIES ADDRESS IN THE UK.

ALL THIS WAS PLANNED WITH MY BANK BEFORE I LEFT THE UK. I HAVE HAD NO PROBLEMS. I DON'T USE THESE NOW AS I USE MY ACCOUNTS OVER HERE NOW. SO YES YOU CAN PAY FROM OVER HERE. HOPE THIS HELPS YOU.

KATH.

[featherB 1]

I have a fair amount of debt that I'll have no hope of paying off before I leave the UK. I'm going to keep my current account open, and leave a chunk of money in there (which I will then top up periodically when it starts running out) so that my payments can carry on going out every month as usual.

If you're worried you really can't afford to keep up the payments, maybe look at trying to come to some kind of reduced-payment/frozen interest arrangement or something?

Is there anybody out there who has experience of dealing with debts (bank loans, credit cards etc but not mortgages) that you still owe in the UK but are now dealing with from the US post K1 visa?

I have a number of debts with UK banks and UK credit card companies which unfortunately I will not be able to pay off in full before I move out to the US to marry and then settle so is there anyone else out there in the same boat who has any information about how to handle such an issue? In total I probably owe around £10K.

Do I keep a UK bank account open and wire enough funds back every month to cover the outgoings until my debts are paid off? I have a poor credit rating in the UK so wouldn't get approved for another loan to pay off all my debts in one go (not that I would want yet another loan) so that is not really an option. Sending back money from the US to the UK is also expensive business is it not? I am relying on getting a good job in the US in order to continue paying back my debts in the UK which is another factor.

Any advice gratefully received.

Cheers

Pete

[Mags 112]

Yeah, sign up for online banking before you go. Everything can be handled from there.

[mawilson 2,133]

Cian - your new avatar is driving me nuts

[Mags 112]

Cian - your new avatar is driving me nuts

Makes you dizzy doesn't it? But is strangely compelling at the same time...

P.S. I'm Sian (the female other half!)...Larry( aka Cian) is PlatyPius......

[PlatyPius 5]

"Feeling dizzy? Stop watching my avatar then......"

Her avatar making you dizzy? Download the "Adblock" extension for Firefox and block all images for "img1.jurko.net" I did.

ROFL

[Mags 112]

"Feeling dizzy? Stop watching my avatar then......"

Her avatar making you dizzy? Download the "Adblock" extension for Firefox and block all images for "img1.jurko.net" I did.

ROFL

Clever cookie.

[clloyd 0]

Remember, that once you become a US resident for tax purposes, all interest earned is taxable to the IRS, and if the total amounts in foriegn accounts is over 10K, you are required to report that to the Treasury department each year.

[Alex+R 0]

How do you manage paying off debts through online banking if your new account is with another bank?

[Candace 2]

Hello Pete,

You are in a strong position to be able to discuss repayment options with your creditors, seeing how it's completely possible for you to walk out on these debts if you don't plan on living in the UK again any time soon. Write to your creditors and explain you are unable to pay the debts at the moment due to moving to the US and financial difficulties, and request that they freeze the interest on your accounts. Also ask them to re-confirm the amounts you owe to them in writing, and say you will make an offer once you receive all the amounts in writing (say, ten working days from the date of your letter, or you will take your approximation.)

Do you have access to any cash at all (preferably more than 25% of what you owe) for example through selling property, a car, etc? If so you may be able to make an offer of a one-off repayment, your debts would be cleared with the lesser amount and that's that. If not, you can ask to continue to have the interest frozen, and explain your situation and that you expect to be able to make payments in (for example) April 2007 and at this time expect to pay 5 pounds per creditor per month. Then, any more you are able to pay is a bonus.

Also, if any of your debts are with credit cards you must return the cards, also take no more credit (loans etc.)

You can use a free organisation (for example Payplan) who offer to do this service for you at no charge. However I had a truly awful experience with them and chose to pay an Insolvency Practitioner to do the job for me, the fees are around 500 pounds and I am getting 100% better service.

You can make payments from the US to the UK but it can be really difficult, so banking some money with a third party is probably a good idea, or at least sending it in bigger chunks so you don't get shafted on fees.

I've probably forgotten something very important, feel free to PM me or ask any questions here. Good luck!

~Candace

[PlatyPius 5]

The problem - at least in the US - with offering a partial payment as a final payment, is that it then ends up on your credit report as a "settlement". Potential new creditors don't like settlements. Who would, really?

"Hmmm.... we can give this guy $5000 worth of credit, and we might get back $2000 from him...... Nah....."

That's the big problem with the debt reduction game. I've never taken partial payment deals anyway.... I created the debt. I'm morally obligated to completely fulfill it.

[Mags 112]

How do you manage paying off debts through online banking if your new account is with another bank?

Well, most credit cards allow you to handle your debt with them online. Simply go to their homepage and sign up for their online services. Once you get a new account (in the US) you can then make payments by accessing your credit card's online services by clicking on the "make a payment" button and using your US account details (i.e. debit card).

[Alex+R 0]

How do you manage paying off debts through online banking if your new account is with another bank?

Well, most credit cards allow you to handle your debt with them online. Simply go to their homepage and sign up for their online services. Once you get a new account (in the US) you can then make payments by accessing your credit card's online services by clicking on the "make a payment" button and using your US account details (i.e. debit card).

Ahhh...but what if your debt is to a bank? Like, you have, for example, some Brazilian bank loans you'd like to finish paying off from the U.S.?

What's the best way to manage that?

[Mags 112]

I would have thought that you could set up a direct debit (i.e. a set amount each month directly coming out of your account in the US) to the bank you owe money to. If you have a bank loan you would already have a payment set up like this. You should just have to change the account that the money comes from. If it is an overdraft, get online banking for that account and just credit it with money when you can afford it.

If you are really unsure I'd just phone them and speak to a financial advisor for that bank. They should be able to provide you with all the details you need. All banks do differ slightly in how they handle this, so best bet is have a chat with them.