British Expats
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British Expats (https://britishexpats.com/forum/)
-   Canada (https://britishexpats.com/forum/canada-56/)
-   -   Managing UK debt from Canada (https://britishexpats.com/forum/canada-56/managing-uk-debt-canada-690855/)

tonrob Oct 25th 2010 4:10 am
Re: Managing UK debt from Canada
 
Originally Posted by Flyingscottie (Post 8940911)
Thanks Tonrob.

Is this the site you use? http://www.xe.com/fx/ I'm not really sure how it works.

We would need bank account in UK and Canada, right?

The plan is to have the rest of our debt on 2 credit cards (max) and make just above the minimum payments until they are cleared (4 years!!!) although obviously if we have spare cash we would put it towards this debt too.
Keep your UK bank account(s) open regardless of debt situation - you never know when you might need them and they're next to impossible to re-open as a non-resident if you close them.

Card debt interest rates are often awful. This could well be an instance in which consolidation works in your favour. Merely paying the minimum for 4 years means you're getting shafted. Someone else mentioned borrowing in Canada - this is fine if you know you can do it. If not then can you get a personal loan from your UK bank (at a lower rate) to consolidate the debt? You'd probably need to do this before you left though. (And don't let them sell you any crappy insurance to go with this - it would be almost useless in your situation).

Not sure if xe.com dictates you must have a Canadian account (although I expect you'll be getting one anyway?) - although it probably does. If you can't find what you need to know on their website then call them. I have always found them very friendly, helpful and professional (much more so than any bank I've ever dealt with).

Alan2005 Oct 25th 2010 4:15 am
Re: Managing UK debt from Canada
 
Originally Posted by Almost Canadian (Post 8941109)
The same applies to line of credit as applies to a mortgage. If the bank is prepared to lend you, say, $250,000 for a mortgage, but you only require $200,000, they will usually be prepared to provide you with a $50,000 line of credit. So, as with most things, it depends.
You'll have to explain this one to me. OP will have trouble getting a LOC because of credit history, but because (how?) they can get a $250k mortgage (for some reason???) it won't be a problem.

fledermaus Oct 25th 2010 4:58 am
Re: Managing UK debt from Canada
 
I'm puzzled how it's possible to move to Canada without some money behind you. Is there a definite job to come to?

jimf Oct 25th 2010 5:05 am
Re: Managing UK debt from Canada
 
Originally Posted by tonrob (Post 8941248)
Keep your UK bank account(s) open regardless of debt situation - you never know when you might need them and they're next to impossible to re-open as a non-resident if you close them.

Card debt interest rates are often awful. This could well be an instance in which consolidation works in your favour. Merely paying the minimum for 4 years means you're getting shafted. Someone else mentioned borrowing in Canada - this is fine if you know you can do it. If not then can you get a personal loan from your UK bank (at a lower rate) to consolidate the debt? You'd probably need to do this before you left though. (And don't let them sell you any crappy insurance to go with this - it would be almost useless in your situation).

Not sure if xe.com dictates you must have a Canadian account (although I expect you'll be getting one anyway?) - although it probably does. If you can't find what you need to know on their website then call them. I have always found them very friendly, helpful and professional (much more so than any bank I've ever dealt with).
I tried taking out a UK personal loan from Canada but it seems everywhere has the same rule that you have to be resident in the UK. This is despite having a house and mortgage in the UK still and only being on a TWP in Canada. As you suggest all arrangements should be set up before leaving otherwise its probably very difficult or impossible to make changes. The OP could try taking advantage of the CC interest free deals just before leaving.

Taking out a Canadian loan is an option and looks especially attractive given the present exchange rate, if it is to be used to pay off a loan in the UK. However, it might be tricky to get the loan as a new arrival. One strategy might be to use an interest free UK CC deal for a year or so then try a Canadian loan and transfer to the UK.

Aviator Oct 25th 2010 5:05 am
Re: Managing UK debt from Canada
 
Originally Posted by fledermaus (Post 8941330)
I'm puzzled how it's possible to move to Canada without some money behind you. Is there a definite job to come to?
Yes, just reread the original post, and 'hope to earn'. If it is just a desire rather than actuality, might cause a problem or two. When activating PR, do you not have to show proof of settlement funds?

Almost Canadian Oct 25th 2010 5:10 am
Re: Managing UK debt from Canada
 
Originally Posted by Alan2005 (Post 8941255)
You'll have to explain this one to me. OP will have trouble getting a LOC because of credit history, but because (how?) they can get a $250k mortgage (for some reason???) it won't be a problem.
Who said the OP will not be able to obtain a mortgage or a LOC due to lack of credit history? I was able to obtain a mortgage and a LOC from England with no Canadian credit history. It is possible to obtain a LOC mortgage. I am not saying it is guaranteed, just that it is possible.:p

Until a Canadian informed me of such things when I came over on a recce trip, I had no idea that LOCs were available, or the basis upon which they worked. I appreciate that financial wiz kids such as you probably did know about them and that there are "better" options available.

Are you suggesting that, from this point forward, people are only supposed to post "guarantees" as opposed to "possibles":sneaky:

Alan2005 Oct 25th 2010 5:14 am
Re: Managing UK debt from Canada
 
Originally Posted by Almost Canadian (Post 8941356)
Who said the OP will not be able to obtain a mortgage or a LOC due to lack of credit history? I was able to obtain a mortgage and a LOC from England with no Canadian credit history. It is possible to obtain a LOC mortgage. I am not saying it is guaranteed, just that it is possible.:p

Are you suggesting that, from this point forward, people are only supposed to post "guarantees" as opposed to "possibles":sneaky:
No, but you implied that if you can get a mortgage then you can get a LOC. I think it really is pretty much guaranteed that the OP won't get a mortgage with the information they've provided. You can't compare when you came with now - it was different back then, banks were giving credit to anybody with a pulse, and even that requirement was sometimes waived.

nldfc Oct 25th 2010 5:30 am
Re: Managing UK debt from Canada
 
I just left my debt in the UK unpaid which on reflection was a very stupid thing to do :o

Alan2005 Oct 25th 2010 5:40 am
Re: Managing UK debt from Canada
 
Originally Posted by nldfc (Post 8941388)
I just left my debt in the UK unpaid which on reflection was a very stupid thing to do :o
You paid taxes in the UK, taxes went to bail out banks, ergo what you did isn't even remotely immoral. Stupid? That would depend on what the consequences might be - if there aren't any, then no it wasn't.

CanadaJimmy Oct 25th 2010 5:43 am
Re: Managing UK debt from Canada
 
I have a student overdraft with LloydsTSB which I'm paying from here with Canadian Forex. Never had any problems.

nldfc Oct 25th 2010 5:45 am
Re: Managing UK debt from Canada
 
There havent been any consequences yet and I left about 10 years back so I think it is written off now (could be wrong on that when I think about it )

I'm not sure the bank/visa and mastercard would welcome me back with open arms if i returned to the UK in the future

R I C H Oct 25th 2010 5:46 am
Re: Managing UK debt from Canada
 
Originally Posted by Alan2005 (Post 8941397)
You paid taxes in the UK, taxes went to bail out banks, ergo what you did isn't even remotely immoral. Stupid? That would depend on what the consequences might be - if there aren't any, then no it wasn't.
Theft though, isn't it?

nldfc Oct 25th 2010 5:48 am
Re: Managing UK debt from Canada
 
Originally Posted by R I C H (Post 8941406)
Theft though, isn't it?
Pretty much

Alan2005 Oct 25th 2010 5:51 am
Re: Managing UK debt from Canada
 
Originally Posted by R I C H (Post 8941406)
Theft though, isn't it?
No theft, risk. Theft is what banks do, people default.

Aviator Oct 25th 2010 5:57 am
Re: Managing UK debt from Canada
 
Originally Posted by R I C H (Post 8941406)
Theft though, isn't it?
Fraud more likley.


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