inapickle

Hi everyone,

I am an Australian and British passport holder and i've been living in the UK for the past 3 years. I have credit card debt of about £1500 and I am returning to Oz in a month.

I had every intention of paying these debts off (one of £1000 with a bank and another of £500 to a leading cc company) before I returned. I have always been a stickler for paying my bills on time and meeting my responsibilities. However the past two months have seen my income fall from £400 a week to £100 a week (if i'm lucky). I am self employed and the "credit cruch" finally kicked in and kicked hard.

I am so stressed and freaking out. I thought I would have enough money to pay off the debt, ship my things home and have enough money to survive on when I arrived in Oz but now I don't even know how i'm going to be able to afford my final months rent!

I have tried turning to friends and family for help but everyone's situations are pretty dire at the moment so no one can give me financial support.

I know there have been countless threads with similar questions but they all seem to refer to large debts of £20+.

The general consensus seems to be that UK companies can track you down in Australia, however the size of the debt will influence whether it is worth them fully persuing it or not. To persue debt internationally, so it would seem, is an expensive business.

So would a £1500 debt be likely to be seriously persued?

I know morally the decision to just leave behind a debt is not a good one, but i feel like i'm backed into a corner.

Once I return to Australia I do not plan on returning to the UK again for work so it really is "just" a matter of whether or not i'll encounter major problems with this in the future in Australia.

Once again, I understand the moral implications of avoiding my responsibilities, and I also understand that some may take offence to my considering this.

Rather than sparking an ethical debate, please may those who have some knowledge/experience regarding such matters offer their advice.

As I said...I am so stressed and scared by my current situation, I really don't know what to do.

Thanks

jad n rich

Contact the companies you owe money to, make arrangements to pay a smaller amount in repayments till your income is flowing again. Nearly all companies will put arrangements like this in place.

Too easy as they say here

inapickle

I already spoke with the bank (£1000 debt) and they said that for any cards with a balance of £1000 or less the minimum monthly repayment is 2.5% reguardless of circumstances. They wouldn't allow me a break in repayments either whilst I get myself sorted in oz.

I simply cannot make the payments...I know it doesn't sound like a lot, but I need money to eat when I arrive in australia. Any work or centrelink arrangements will take a couple of weeks to come through. I need to be able to support myself, that is the priority.

Also the costs of transfering these payments would be rediculous surely?!

Deancm

The OP is returning to Australia in a month. Contacting the companies will be pointless because they are not going to come into a 1 month agreement and chances are if they know the OP is returining to Oz they will want the balance paid in full immediately.

Loads of people have done it and chances are they won't chase. More likely they will sell it off to a debt collection company and for £1500 will more likely get written off with a big black mark against your UK credit rating, which won't affect you in Australia.

inapickle

Thanks...this is what I am hoping...I am not too concerned with my UK credit rating, it's more how I am going to fare over the next few months that bothers me!

jad n rich

So payments about $12 aussie bucks a week, if you cant afford that, why on earth would you want to live in an expensive country like australia.

Pizza time I think

inapickle

Because i'm AUSTRALIAN?!

Yeah...but there's also the $20 each time I want to send that money...it adds up.

For the record I will be living with a friend when I arrive, but I literally have nothing to support myself with. I am leaving the UK to get away from an abusive relationship and to be with friends and family again.

kar-kier

They can do absolutely bugger all about it, even if they do chase you to Aus, AND it can have no effect on your Aus credit rating!! I have done a LOT of research on this!! Credit cards and loans are considered consumer debt, and are only valid in the country where the contract was signed. The only time this can bite you in the bum is if they suspect fraud, i.e. you borrowed the money with no intention of paying it back. This should not be confused with civil debt - child maintainence, taxes etc - they can, and will chase you for this!
They will make all sorts of threats, but in reality there is not a thing they can do about it, even if they sell it to an Australian debt collection agency, again there is nothing LEGALLY they can do about it. They may come to your door and pester you, but if they do this too often, then are breaking Australian law.

Cheetah7

If I were you, I would write a letter explaining your circumstances and that you are unable to make payements for the time being - however once your circumstances change then you will be able offer them something. Keep in touch with your creditors and as soon as you are in a position to do so, you will make payments. If you go on the Cit. Advice Bureau website, there is a section about money and a standard letter for those that 'cannot pay'.

It is not as though you are saying you wont pay it, you are just not in a position to pay now.

Good luck with your future - it takes guts to escape from an abusive relationship.

Dont listen to anyone that judges you on this, they are not in your shoes, they dont know your full situation or the finer details of your relationship.

Put your safety first, keep in touch with your creditors, get yourself sorted and then you can start paying back your debts.

sr71

The above is all true, in fact I would even leave without telling them so that they don't have a clue where you have gone. Sometimes people are too honest for their own good. If you intend to pay them back then do it on your own terms.

Spellbound

http://www.expatfocus.com/index.php?...=viewforum&f=2
Full of information about debt - what the creditor can do and cant etc and without any moral/personal judgment.

plantpot

I agree with PP on this one, go to the Citizens Advice Bureau, they can ring on your behalf if you like....good luck for your move....

Pollyana

Use www.tranzfers.com to move the money to the UK, then its costing you £7 every time you move, not £20, and pay the debt off from here. You don't just have to transfer the minimum each time, move enough to your UK bank account to cpver several months payments and then use internet banking to pay the debt monthly.
They won't take action against you if you are paying them something, they can't pursue you for more because yoiu are here and its not worth their while, an eventually the debt will be cleared.
Many of us on here have cleared debts grdually in this wya, just takes time.

kar-kier

If you decide to contact them, do not tell them you are leaving the country! They will demand the full amount, as they know once you leave the money is lost, but if your still in the country for another month, they could take action!

Les Avalook

So would a £1500 debt be likely to be seriously persued?

No m8, with Nulabor every man, woman and child has got about £15,000 debt to get us out of this UK mess.

Just think of it as leaving a tip.