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So, I just got through the first round of an interview with a Canadian company. I'm an American Citizen and owe debts in the US, like student loans and a car payment and some investment property. I don't know if I'll get this job yet, but they'll take care of the paper work for me to come and work there. The thing I don't know about is, if I get this job, what's the best way to pay my existing debts in the States? I usually pay all of my bills automatically through my bank account, including said debt. I can imagine that transferring Canadian dollars to a US bank isn't cheap, and could be problematic. I'm sure I'm not the only person to ever do this. Anyone do this, or know the best way to deal with such things?
I searched the forum and didn't see anything about that, so forgive me if someone has already asked this question. If so, point me to the thread. Thanks!
First off, you'll have to pay off or sell your car before having it leave the country. There is zero chance that the bank will allow you to let it leave the States.
Bank transfers are pretty easy. You'll get dinged on exchange if you transfer it. For things like student loans check with the lending institution to see if they can continue withdrawing funds from a foreign account.
Well if you move to Canada your credit history won't follow so you'll owe $0. If your debt is say.. <$30k they won't waste the money and time to prosecute you (relatively low debt and expensive to go to court), they'll just right it off and you're home free.
Good question! I may be facing the same thing soon. The job market for my field is absolute crap (Product Design) and I went to a big industry trade show this week and the company that showed the most promise of extending me a job offer was based in Calgary. That was the only "give me a call next week" response I got and it was from the company owner.
I'm in the same situation if I get a job offer. Student Loans, a car loan, credit cards, etc.
If you find any info on this I'd love to see it. If I start researching it as well and find some good info I'll do the same.
I have American student loan debt and live in Canada and I will put it this way -- the cost of daily living (restaurants, groceries, etc) is about 20% higher here and most provinces have a sales tax ranging from 12-14% so in general the cost of living is higher -- rent in the Toronto area is about the same as where I am from (Washington DC) but everything else costs more -- esp car insurance which is much much higher than in the US.
I wouldn't discourage you from coming but be aware of the higher taxes and be aware that it is not easy to send money back as you will be paid into a Canadian account and transfering money back to the US can get tiresome as there is no easy way to do this without avoiding wire transfer fees (TD will not let you open an account with the American branch of TD and just transfer from the TD Canada Trust - they aren't linked in that way)
I may end up moving back to the US due to debt issues -- I owe a significant amount there and the salaries here just aren't high enough after taxes to make this worthwhile in my field (IT)
For reference I work in IT outside of Toronto in Waterloo for a three letter company that makes the most popular smartphone among business users ;-) They pay well for Canada but these salaries would be a joke in many US cities.
First off, you'll have to pay off or sell your car before having it leave the country. There is zero chance that the bank will allow you to let it leave the States.
Bank transfers are pretty easy. You'll get dinged on exchange if you transfer it. For things like student loans check with the lending institution to see if they can continue withdrawing funds from a foreign account.
I was told that a financed car can be taken to Canada but a leased car can't. I know I can do a transfer, I was wondering if anyone had any ideas on how to avoid getting hit with fees, etc.
Quote:
Originally Posted by Led
Well if you move to Canada your credit history won't follow so you'll owe $0. If your debt is say.. <$30k they won't waste the money and time to prosecute you (relatively low debt and expensive to go to court), they'll just right it off and you're home free.
Um, that's the stupidest thing I've ever heard. This is a temporary contract job, and I have excellent credit. Why would I do something so idiotic?
Quote:
Originally Posted by avironneur
I have American student loan debt and live in Canada and I will put it this way -- the cost of daily living (restaurants, groceries, etc) is about 20% higher here and most provinces have a sales tax ranging from 12-14% so in general the cost of living is higher -- rent in the Toronto area is about the same as where I am from (Washington DC) but everything else costs more -- esp car insurance which is much much higher than in the US.
I wouldn't discourage you from coming but be aware of the higher taxes and be aware that it is not easy to send money back as you will be paid into a Canadian account and transfering money back to the US can get tiresome as there is no easy way to do this without avoiding wire transfer fees (TD will not let you open an account with the American branch of TD and just transfer from the TD Canada Trust - they aren't linked in that way)
I may end up moving back to the US due to debt issues -- I owe a significant amount there and the salaries here just aren't high enough after taxes to make this worthwhile in my field (IT)
For reference I work in IT outside of Toronto in Waterloo for a three letter company that makes the most popular smartphone among business users ;-) They pay well for Canada but these salaries would be a joke in many US cities.
I realize that the cost of living is higher, but I stand to make twice what I make here. My outstanding debt here doesn't change, and also, we try to live below our means, unlike most of this country.
Does anyone have any constructive advice that can be backed up by first hand experience, a link to a reputable website and that isn't illegal or criminal? The recruiter mentioned getting an account at an international bank?
**note that this is a temporary contract job for 1 year, I am not moving permanently, nor planning on becoming a resident of Canada. I own property in the US and will maintain my permanent address here.**
Last edited by texas1312; 06-19-2010 at 06:22 PM..
I was told that a financed car can be taken to Canada but a leased car can't. I know I can do a transfer, I was wondering if anyone had any ideas on how to avoid getting hit with fees, etc.
Well, I imported a vehicle from USA to Canada and will tell you that before you attempt it, check out Canadian border rules and regulations:
as well as local Registry of Motor Vehicles (RMV) regulations, in the area you are planning to reside.
I did it in 2002, that was a relatively new SUV, and what I remember, is - at the border they checked for the make and model and year in a special book and told me that I was lucky because that particular combination of make/model/year was allowed to be imported to Canada (that was 2000 Kia Sportage). I thought, Barnacles! What if the car wasn't on that list, WTH would I have to do with it? (I was a Canadian citizen returning to Canada after a length of time living in USA).
Then they calculated my tax on the vehicle. Don't ask what it was, (importing taxes?) - I remember it was around $1200. I paid the GST portion and didn't pay the PST portion at first. Later, when I wanted to sell the vehicle, I had to finish paying the taxes before given permission to sell, by RMV regulations.
After I did get the car over the border, I had to get a certificate that it adheres to the Canadian safety standards. I went to a Canadian Tire auto service and they checked the car out and wrote a certificate. The main problem was that the Kia didn't have running lights as required in Canada, and I thought they would re-fit it to have running lights for a nice sum, but they didn't, and I didn't get charged much, - $35 or so.
If you are only coming here for a year you do NOT have to import your car permanently -- you merely need to obtain a Form 1 A at the border which is a "Temporary Importation Form" -- show them the title to your vehicle.
if you do not intend to plate your vehicle in Canada and your US insurance will cover you for a year in Canada, honestly I would do what most American students in Canada do and keep your car plated and insured in the US.
As for the banking you WILL have to open a Canadian bank account since a Canadian employer cannot deposit a cheque into a foreign (American or any other country) account -- you WILL need to pay wire transfer fees to move money from your Canadian account to your US account since you will NOT be able to set up online bill pay from a Canadian chequing account to a US payee.
I pay my US bills by transfering money from my Canadian chequing to my US chequing and then paying my US bills online from the US account.
It's a pain in the a__ and costs 30 bucks every time I move money from Canada to the US but I have found no way that is a) faster b) safer (bank wires are protected) and c) convenient (I can just pop in to my local TD Canada Trust branch)
Oh and your credit does NOT follow you -- excellent credit in the US means nothing in Canada -- Canada maintains its own credit records -- some places may be able to access your US credit using your social security number but most will not -- they will only take social INSURANCE numbers which are Canadian numbers similar to American SSNs.
As far as Canada is concerned, you have never had credit -- everything you did in the US does not matter here -- you don't have bad credit, you have no credit -- like an 18 year old in the US. You would not be approved for a mortgage or credit card easily here UNLESS the bank you use could access your US credit which is not always the case.
For cell phones here you will have to pay a deposit most likely since they cannot use an American SSN to check American credit.
Canadians likewise have no credit when they move to the US. It works both ways.....these are different countries my friend...different banking systems, credit systems, currency.....a great credit score in the US and excellent long-term relationship with your American bank mean almost nothing here. They are only concerned about your CANADIAN history.
Oh and your credit does NOT follow you -- excellent credit in the US means nothing in Canada -- Canada maintains its own credit records -- some places may be able to access your US credit using your social security number but most will not -- they will only take social INSURANCE numbers which are Canadian numbers similar to American SSNs.
As far as Canada is concerned, you have never had credit -- everything you did in the US does not matter here -- you don't have bad credit, you have no credit -- like an 18 year old in the US. You would not be approved for a mortgage or credit card easily here UNLESS the bank you use could access your US credit which is not always the case.
For cell phones here you will have to pay a deposit most likely since they cannot use an American SSN to check American credit.
Canadians likewise have no credit when they move to the US. It works both ways.....these are different countries my friend...different banking systems, credit systems, currency.....a great credit score in the US and excellent long-term relationship with your American bank mean almost nothing here. They are only concerned about your CANADIAN history.
And from first hand experience, vice versa. Even within the same bank. I had a MBNA mastercard in Canada with a substantial limit, and a great history, moved to the States, making significantly more money, and the best they could offer me is a $500 secured card. WTF?
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