Samleeuk

Hi I am sure a familiar scenario to many of us on here, but here goes. We can't sell our house so looking to rent. Can just cover mortgage with rental, but have debts (mostly to get visa and to finish house refurb for sale) but none the less quite substantial. If we don't sell we don't clear debts.

We need to validate by Feb = more debt, or we rent and stay in OZ and just have to find cash for deposit on rental and container. Bottom line is so long as both working we can just about keep afloat till house sells. My OH is a brickie, got about 1 months work then nothing in pipeline (first in 20 yrs!). I earn a good wage here, but kinda job won't be able to secure work till in WA. OH got a couple of start options in Oz too. If only one working we can't survive, I am applyig for jobs and that will solve that if comes off.

So a couple a questions:

If we move to Oz and pay minimum on credit cards can they ask for money back as not in UK.

I we decide we want to buy in oZ, will our UK depts (being paid so no bad rating) affect our OZ app/ also having UK mortgage.

I we really can't keep paying debts and lose everything will this affect our OZ credit rating? (Worst case scenario as have around 80 - 100,000 GPB) equity in house pre crash...yes we are prepared to accept around 60 - 70 k less, still no joy, and reduced 40k!

Feel like we caught between devil and deep blue sea, all this on top of all the other emotions of moving life across world!.....All advice (not sarcasm appreciated x)

robert cowan

hope you got your hard hat on
off to work now will send you a pm later.

DrWho

As ever these are hard things... Your credit rating in Oz has nothing to do with your rating in the UK. They work in completely different ways so you're OK there; we all have to start from scratch when we get out here. However if you declare yourself bankrupt that's a different kettle of fish and there's various applications where I believe you'd have to own up to that one. (or not depending on how you feel about accidentally ticking the wrong box...)

If you move here and continue to make your minimum payments I'd see no reason why they'd ask for it all in one go; however check the small print on the T&C's of your provider, it may say something along the lines of this credit card is only available to UK residents. (and I'd guess you can argue that you're only temporarily moving therefore still technically a UK resident - no doubt JAG knows the definitive answer to that)

Next is the possibility of moving and not paying your debts off, which is a very emotive subject on here and usually results in several pages of slanging followed by Polly losing patience with everyone and closing the thread... Just to dispel a couple of BE urban myths though... No, HMG's security services and various other departments do not share information with finance company's such as 'When did Joe Blow leave the UK and where was he headed'... If you're very careful it can be very difficult for people to find you... Yes, there is a reciprocal agreement between Australia and the UK as far as enforcing civil court judgments go... Yes, HMG has been extremely successful in tracking down people that owe student loans... yes, the cynic in me does believe that the aforesaid information that is not shared with anyone else is readily available to the student loans department...

And finally... Go and talk this through with a paid professional who knows about these things, a Solicitor or Accountant would be where I'd head... It could be the best few hundred quid you'll ever spend in your life... and avoid the funny money blokes like the plague...

Best of luck with whatever road you choose...

goldchoccycoin

Hi, I had UK debts (Uni debts) when I left the UK and paid them off month at a time from here. I tried to pay as much as I could and now they're gone - woohoo! It's no problem - you will need to keep a UK address for your statements (I use family who just put them aside or forward them to me in bulk once or twice a year) and keep up with my accounts online. I used www.tranzfers.com.au to transfer the money across which is cheap ($15 per transaction) and very easy with great conversion rates.

Best of luck.

Nice Guy

I've had my say in the past over this matter.

Call me old fashioned but I believe honesty is the best policy in my book.

Pollyana

Samleeuk

Thanks, we have got to somehow keep on top of everything until housing makret picks ups, as then what was a relatively good financial situation pre the housing crisis, will be so once more, its kinda a cash flow problem I guess.

We have been getting by with both working for 6 months now (since house went on market), I think if we didn't have to validate then would probably just keep on as we are however stressful it is till house sells. But now with OH work worries and end of non summer looming here, seems if we can both secure work in Oz may as well be in sun there than rain and cold here. Also got two little ones so entertaining them over the next few months will be easier and cheaper in Oz than the UK. Just very scary and not at all how organised/ everything in box me imagined it would be!!!

moneypenny20

Excellent post. Nice one

Beppe

Seems a no brainer to me.

You have what sounds like a good job here in the UK now with a good wage, but in Oz neither yourself or your OH have any guarantees of work. If you stay here you know you can survive and you know how long it would take to pay off your debt. Your financial situation is contained. Moving to Oz now would be, in my opinion, committing financial suicide for the sake of a bit of sun.

Why the rush? The best things are worth waiting for.
You’ll be far happier starting a new life in Oz with no financial ties rather than adding severe financial stress to all the other worries that emigration brings.

RenShen

Hi,

Have you thought about getting a 0% balance transfer before you leave the UK? That way your minimum repayment would be very low at least for a while. Of course, you would have to keep your emigration plans a secret while you apply but I can't see this being a problem as long as you continue to make the payments?

Also, if you have equity in your home, remortgage and use the cash to clear all your other debts. Then if the rent clears the mortgage any cash you earn in Australia will be your own. If the rent does not clear the mortgage, consider switching to interest only repayments and wait until the housing market picks up until you sell. You would have to rent in Australia though until you are both working, but then if your wages are good you could consider a mortgage in Australia to buy a home. That way you would own 2 homes and benefit from any future increase in equity in both.

There will probably be people who disagree with what you are saying (even though you haven't suggested simply doing a runner!) but everyone's circumstances are different so go with what you think is best.

Also, I would not presume to guess your reasons for wanting to move. Yes, on paper it looks like a bad move financially, but then you must have already considered this and have other reasons to move.

Good luck anyway,
Ren

Beppe

Well actually the bank would more than likely end up owning two more repossessed homes. Has to be the worst advice ever given for a couple in their current financial position.

Increases in equity? Not for the next few years.

Samleeuk

Thanks for your thoughts, as you said we don't want to not pay as long-term we have a lot of money sat in the house and if we can keep it going it will pay off long-term. We looked into remortgaging to free up equity but the 'credit crunch' rates make it so much more expensive than our existing rate (really good lifetime tracker) we would be no better off, just all in one place. We tried to get additional loan from exiting lender, but we are self employed we do not earn enough to lend more, despite the fact that it would have saved us about £400 per month in outgoings! We will apply for 0% cards for some of debts (quite hefty) at least we are paying balance and not interest.

We had decided to validate and stick it out here till house sold, but now OH work situation has ment this is a lot less likely to do. I have applyed for full time job and would earn double than here if comes off. Fingers crossed.

Reasons for going are many and complex, but we have a 4 yr old who willstart school Feb 09 in oz, we wanted to settle her and this is a reason to go sooner rather than later.

The bottom line is the we built the debt up on house refurb, visa app and during times when I not working after having children, assuming we could clear them and lots more when house sold, so a: a mistake to rely entirely on house, but an unfortunate casualtyof current market. Its just all very frustrating and stressful. 6 months ago we thought we would sell house have no debts about 80,000 gbp in bank ready to start a new life in Oz. Learnt lots of lessons re: complacency of house equity, however realistically we couldn't have done things that much differently, at the time of life starting family etc, we couldn't have saved any money really, just spent a little less although house etc needed to be done to sell!

Beppe

My personal opinion is that you would alleviate a lot of your stress if you set your emigration date to be sometime in 2010, accept it and then start working towards that goal. Sacrificing “the luxuries” to pay off your debts and as much off your mortgage as possible is easier to stomach with that end goal in sight. A couple of years of hardship will pale into insignificance in the long term when you have achieved your dream. As you say it is a valuable lesson to learn and one you should not “run away” from.

I know you mentioned your OH’s job security here in the UK is an issue, but in reality that will be no different in Oz. Whilst folk argue the degree to which Oz will face a downturn, one thing the majority agree upon is that there will be a downturn. The construction industry is particularly vulnerable.

Of course, if you secure a long term, well paid job now in Oz then certainly that is one positive reason for emigrating now. Although, I’d still advise caution whilst things were so tight in the UK (rent only just covering mortgage etc).

Good luck.

Australia_bound?

Reading into this, would be possible to avoid creditors apart from student loans, as they'd have zip chance of tracing someone to Aus

RenShen

If you actually READ my post I only suggested buying in Australia after they were settled and on a good wage. I would hardly class this as "the worst advice ever given". I think your response was a bit harsh.