UK Debt When Moving Abroad (Relieve Your Debt)

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The idea of moving abroad to escape debt seems to be more of a common practice these days. People with failed businesses or swamped in debt seem to think moving abroad will give them a fresh start, free from debt and allow them to build a new life.

It became obvious after reading some of the comments on various UK debt forums that there is divided opinions on this. Some people think running away from debt is too much of a risk, and believe the creditors will eventually catch up with the debtor, whilst others encourage the idea, stating that there is no way debtors will be found and seem to encourage people to move on and enjoy a new life free from the responsibilities of debt.

In the past this might have been a successful way to start a new life without the worry of unpaid debt. However, creditors and courts alike seem to have caught up with the idea over the last few years and have taken action to make it more difficult for people to escape the responsibility of repaying outstanding debt.

Creditors taking action

Some countries, such as Germany and Canada, have reciprocal agreements when it comes to tracing debtors and debt collection practices. There is not an awful lot of information regarding which countries have reciprocal agreements and which do not. Could it be that creditors do not want people to become too clever so have not made it common knowledge? However, a search around the World Wide Web might disclose a few more countries with these agreements.

A reciprocal agreement in the UK means a UK Court can enforce a CCJ (County Court Judgment) using the legal system of the other country. If there is no such agreement in place, a creditor can sell a debt to the relevant country where the debtor resides and debt recovery procedures will commence under the law of that land.

Tracing a debtor

The resources available to creditors nowadays when it comes to tracing a debtor are vast. Although the resources in other countries may be limited, there are still ways and means of finding people, especially once the creditor finds out which country the debtor has moved to. A creditor may have their own department in that country, or relations with other credit companies in that area.

Creditors can also try a tactic or two to locate someone's whereabouts. They may go to the last known address, talk to the neighbours, family friends or relatives who could unknowingly tell them of the person's whereabouts. Once they know which country the debtor is in, their job is made much easier.

Using an ATM card in another country shows us how easy it is to get information from a UK account abroad. If we can do this so simply, what other information is able to zip round the world almost instantaneously?

Having resources to trace a debtor or having agreements with other countries, or even the possibility of selling the debt to an agency in the appropriate country does not automatically mean that a creditor will be successful in tracing a debtor. In some cases, people do get away with it. It is however a risk for anyone considering moving abroad to avoid debt. A creditor has a period of 6 years from the last time a person acknowledged a debt to use the legal system to recover monies. However, if a creditor has taken legal action on an account, the debt can be legally recoverable indefinitely. This means that someone could start a new life abroad and work hard for the assets they accumulated, only to find a few years down the line that a creditor has traced them! This could mean everything they have worked for is put at risk and could be taken from them to repay their debt.

What are the Options?

Many people who move abroad who are struggling to keep up with their repayments may not be aware of the free financial help available. They do not even need to telephone the UK, as there is free advice and help available on the web, just a quick email can put someone's mind at rest and make them realise they are not alone.

There are companies such as FCL Debt Clinic, who can offer a free financial assessment and advice. FCL Debt Clinic can also refer clients to a Debt Management Company who charge no fees and can help negotiate affordable monthly repayments on their clients' behalf by setting up repayment plans with their creditors. Anyone with a UK bank account or the use of one for transferring money, with UK debts, can be helped. This way, the ever-present worry of whether a debt is still around is no longer there to haunt someone.

Nicola Bullimore has been working with people who have debt problems for a number of years. For more information regarding debt issues, please visit our Debt Questions

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Debt Consolidation and Personal Finances: Learn the Truth! (Relieve Your Debt)

Relieve Your Debt

An inability to manage credit, growing debt and bankruptcy are all major problems
today. On an average day, over 8,000 people file bankruptcy in the United States
alone. The Internet is rife with companies that promise help and salvation; to the
uninitiated, their words and assurances prey upon those wanting a painless
solution.

The January post-holiday credit card bills are often the proverbial straw that breaks
the camel's back, where families now have to face the problem of how to pay for the
holiday gifts and celebrations without sliding further into debt.

Avoiding these problems, and recovering from overwhelming debt, are what Real
Life Debt.com is all about: it's a resource site that's dedicated to helping you learn
about your options with credit card debt, debit cards, debt management, debt
counseling, privacy, deciding about bankruptcy (and the different types of
bankruptcy), and more.

Founder Dave Taylor explains "As a private, independent initiative, we're sure that
you'll find Real Life Debt.com to be an excellent resource for understanding and
managing your own financial issues. To ensure accuracy, the materials on this site
are all from the United States government: one goal of Real-Life-Debt.com is to
help people find the excellent material produced by the Federal Trade Commission,
Federal Reserve, Consumer Information Center, and similar organizations."

In addition, Real Life Debt also features a weblog (a "blog") with postings from
different individuals who share their own challenges managing their personal
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Real Life Debt is an unbiased source of credit card, debt
management, privacy and
bankruptcy information, without commercial sponsors or a sales pitch. To ensure
accuracy, much of the material is from U.S. government sites.

Dave Taylor has been involved with the Internet since 1980. He's written sixteen
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and his most recent projects are startup
101 info and Ask Dave Taylor.

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Selecting A Credit Counselor; Asking The Right Questions. (Relieve Your Debt)

Relieve Your Debt

When you find yourself thinking about using a credit counseling service, you need to be very
careful. You need someone who will help you, not just some pushy sales associate who wants
only to sign you up for their service.

You are about to place your financial life in someone else's hands. Make sure you have the
answers to some questions before you do. Then make sure you like the answers to your questions.
Here are some for starters:

Which of my creditors have you worked with in the past?

You have a list of your creditors. You want to compare it to the creditors they have worked

with in the past. Have they been successful working with your creditors in reducing payments,

lowering interest, and eliminating fees?

You need to know not all creditors will work with credit counselors. If all, or most, of your

creditors have, or will, you should investigate these services further. If not, credit counseling
won't do you much good. To protect yourself, ask for a list (in writing) of any of your
creditors they have worked with in the past.

Will my creditors be paid on time each month?

Two things come into play here. What are the due dates of each creditor and when during the
month do you get paid? Nothing defeats the purpose faster than paying a creditor late, after
you have set up a new payment schedule.

Some credit counseling services use a set date each month to make payments from the money
you have given them. If they don't have your creditors change the due date you could be
socked with late fees each month. Find a service that adjusts the due dates of your bills to
work around the days you get paid.

How do I pay you each month?

The credit counselor can't pay your creditors until you pay them each month. Will they

remove money, each month, from your account with an electronic transfer or are you

required to send them a guaranteed check or money order? You want to make it as easy as

possible for this plan to work. Look for a service that will withdraw funds from your

account automatically each month.

When and how often will I get statements of my accounts?

Just because you have turned over a portion of your financial life to someone else to run,
does not mean you don't need to keep track of what is going on. Your statements should
break down your payments so you can see where the money is going. How much is going to
interest, how much to the principal balances, and how much is being paid to the credit
counseling service.

Who can I call?

When you have a problem or question can you speak with someone on the phone? Are you
able to speak to the same counselor each time? If not, how long do you take to returns
phone calls?

Do this up front. Make sure you can live with the answers you receive. Then test the service
to see if they live up to what they have said. Check their service out before you sign on the
bottom line. If you find that you can't get questions answered or telephone calls returned
look for another service. Going through credit counseling is stressful enough without any
added problems.

These questions will give you a good idea what kind of service you have found. There are other
questions you may ask. If you think of any do not hesitate to ask and don't stop asking until you
get the answers you need. It is your money.

David Wilding works with both individuals and groups to help them rid their lives of debt. For the past ten years he has attempted to change attitudes toward and acceptance of personal debt. Visit his website http://www.debtattack.com for more ideas, tools, and strategies to become debt free.

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