Paying off Your UK Debts

[PlatyPius 5]

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.

Actually, I don't know about Brazil, but it isn't really an automatic kinda thing around here. You get a loan, they give you a coupon book, you mail in your payment. Direct debit of payments is still relatively small-scale here in the US, probably because of the number of people who are hourly rather than salary. You never know if you'll actually have enough in the account to pay the bill when it comes out or not.

If you make over $40,000/year, then you can probably ignore the above. lol

Some banks here don't even HAVE direct debit at all, let alone for loan payments.

[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.

Actually, I don't know about Brazil, but it isn't really an automatic kinda thing around here. You get a loan, they give you a coupon book, you mail in your payment. Direct debit of payments is still relatively small-scale here in the US, probably because of the number of people who are hourly rather than salary. You never know if you'll actually have enough in the account to pay the bill when it comes out or not.

If you make over $40,000/year, then you can probably ignore the above. lol

Some banks here don't even HAVE direct debit at all, let alone for loan payments.

Really? Can't get my head round that one. I come from the land of automatic payments!

In that case Alex, give the bank a ring or email them. It's the only way to be 100% sure.

Edited November 25, 2006 by mags

[Alex+R 0]

He's got auto payments in Brazil (insisting that Brazil is more advanced in online banking than the good ol' US) but I don't know if they'll debit it from a US Bank account... he'll have to call. This is one of those fun times when I can just wash my hands of the problem and let him handle it.

[Mags 112]

He's got auto payments in Brazil (insisting that Brazil is more advanced in online banking than the good ol' US) but I don't know if they'll debit it from a US Bank account... he'll have to call. This is one of those fun times when I can just wash my hands of the problem and let him handle it.

Good luck though, hope he gets it sorted.

[Candace 2]

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.

I am not sure how it appears on your credit in the UK, but there is legislation in place recently (I think since 2004, though I might be wrong) that you can freeze interest thereby paying less than you would if you continued to make the 'regular' payments. You would get a 'default' (which I guess is the equivalent of a 'settlement'?) so it does your credit no favours. Many people have run out on all their debts when leaving for the US, I chose to pay them off but was able to freeze interest (my story is a long one but I had a poor credit score anyway, so doing this was of no consequence to that) so what I pay back is what I owe at the time of making the agreement. I would not suggest this method if you wanted to build a credit score in the UK for example, the ramifications of an informal arrangement like this are only slightly better than an IVA or bankruptcy.

[Candace 2]

Damn not being able to edit!

I was going to add that I am sure you weren't in any way insinuating my suggesting this option made me morally less of a person than you because you have never had to make a partial payment, I was just advising the OP who asked about repayment options; partial payments and frozen interest being just two of them that I have found useful in my experience. It's been a very long journey but I am finally comfortable with having settled with each creditor to their satisfaction, when I could have just grabbed my money and run (since I have no plan to live in the UK again.)

~Candace

[Cassie 8]

I transfer money from my american account to my canadian account using PayPal, and cover my monthly payments that way.

[PlatyPius 5]

Damn not being able to edit!

I was going to add that I am sure you weren't in any way insinuating my suggesting this option made me morally less of a person than you because you have never had to make a partial payment, I was just advising the OP who asked about repayment options; partial payments and frozen interest being just two of them that I have found useful in my experience. It's been a very long journey but I am finally comfortable with having settled with each creditor to their satisfaction, when I could have just grabbed my money and run (since I have no plan to live in the UK again.)

~Candace

No, I was just saying that I myself would feel morally obligated to pay all of it. I have some very weird moral convictions sometimes.

[Fandango 1,439]

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.

But if the settlement is with a UK bank, there's no need to worry about a credit report in the US as the US credit is based on a US ssn so the UK settlement won't even be listed.

Not that I'm saying ppl should run out on their debt....just bein technical

[Alex+R 0]

Hmmm brings up an interesting idea... running out on your debt... so tempting. I'll have to decide if it violates my moral code...

[mawilson 2,133]

Hmmm brings up an interesting idea... running out on your debt... so tempting. I'll have to decide if it violates my moral code...

Running out works too. I know someone who did exactly that.

[ladybutterfly 0]

I moved out here from the UK 14 months ago and left about 8,000 pounds behind in credit card and personal loan debts. Nothing has ever happened to me. They cant find you in the US and it wont effect your US credit history either. Of course, it will effect your UK credit rating but as long as you are not planning on going back again you may aswell get away with it! These credit card and loan companies get enough money from people in interest charges so I do not feel bad at all about leaving my debts behind!

[Nikita2Charles 32]

I thought whatever financial situation you had overseas had no bearing on your credit history in the US, so look at it as a way to start a FRESH START. Assuming you don't have any plan to go back to the UK anytime soon, I would relax, use the funds you have available to set up your life here in the us, IF you are both financialy able to pay off the UK debt then it's ok, but If you are unable to do so, I would concentrate on settling down here, and If your partner here in the us has good credit history, He/she can start by adding you on his credit card as an authorized user before you know you'll start receiving all kind of Capital ONE Bank Credit card offer, 1st some with fees then a few month later some offers of card with no fees, and lower APR. We can always learned the lesson from the past and be careful for the future

Edited November 27, 2006 by Nikita2Charles

[mawilson 2,133]

I moved out here from the UK 14 months ago and left about 8,000 pounds behind in credit card and personal loan debts. Nothing has ever happened to me. They cant find you in the US and it wont effect your US credit history either. Of course, it will effect your UK credit rating but as long as you are not planning on going back again you may aswell get away with it! These credit card and loan companies get enough money from people in interest charges so I do not feel bad at all about leaving my debts behind!

Good for you

[Alex+R 0]

I moved out here from the UK 14 months ago and left about 8,000 pounds behind in credit card and personal loan debts. Nothing has ever happened to me. They cant find you in the US and it wont effect your US credit history either. Of course, it will effect your UK credit rating but as long as you are not planning on going back again you may aswell get away with it! These credit card and loan companies get enough money from people in interest charges so I do not feel bad at all about leaving my debts behind!

Good for you

I really want Rey to do this.

It seems to violate HIS moral code however. I myself am more flexible.