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I am an AUS Citizen and a permanent resident of the USA for over 15 years. I have had a great life here and married and two kids to show for it but my husband and I have decided to move to Perth ( all my family is there) and show our kids a different way of living etc. Hubby is on board and we are excited. Now we are agreed on leaving we have some huge questions to ask and any help is greatly appreciated.
1. we have over 20,000 in CC Debt we are trying to pay off before we leave and are upside down ( thanks bad decisions and job loss) on cars. We are not leaving for a year to try and pay them off but the chance is we can not and still have the money required to move... what can happen to us if we can not pay it off and leave the country? Can we come back and visit? Will it cause problems getting a job etc in Perth? Can they follow us and sue us? We owe nothing to the IRS and really are looking forward to our fresh start.
2. Do I need to file dual citizenship paperwork for my kids ( 7 and 10) before going leaving?
4. Can I set up bank accounts from here now to start putting money into so we have cash when we get there.
My biggest concern is the outstanding debt. I am trying to pay it down and dont want to just repossess or walk away from the cars but we owe about $5000 more than what we can get privately selling it on one and $4000 on the other. I can voluntary repossess them as we get closer to moving but with what reprocussions after we leave. We dont know if we will ever move back to live but sure want to visit as my hubby is an American and he has family here too.
Thanks in advance for any advice. Not trying to run from debt at all or we would just go now. That is why we have a one year plan but it may not be enough...
I don't see any reason why you can't continue to pay on your credit cards after you leave the country, people do it all the time.
Increasingly all the banks as well as the credit card companies are linking with associated companies overseas. Once you pop up on the radar overseas, they merely shift your case over to the locals who use the local laws and regulations to collect. If you let your $20K in CC debt sit and don't pay they'll tack on interest and penalties and it will be a tasty sum to collect eventually.
Some people will tell you otherwise, but things are changing quickly legally and otherwise to prevent international debt jumping. A lot of countries are signing international agreements to facilitate international debt collecting.
Another question is whether you can afford to move. Airfares alone are going to probably cost a minimum of $6000-$8000 to go to Perth and then if you add in moving expenses if you take anything with you that far across the world, it will be pricey. With Australia being the most overpriced real estate market in the world just about based on some new figures, you've got that to contend with as well. I've heard from families that have relocated to Australia, they've spent $30-$40K when all is said and done with.
Is there any way you can go to your bank and ask for help with your CC debt? It would be better to take out a personal loan for $20k - pay off the CC with that - then deal with monthly repayments on the loan at the more sane interest rate. Credit cards have such horrendous interest rates that it's hard to catch up and make a dent in the debt, especially if you only make the minimum payment. Like two steps forward, three steps back, every month. Good luck with that.
As far as your kids, apply for Citizenship by Descent for them. It's easy and fast.
For your husband - you'll have to apply for a Spouse Visa, if he doesn't have PR or citizenship already. Shouldn't be too complicated or time-consuming if you've been married a while and have two kids. It was very easy for us (husband's Canadian by birth).
I don't know about setting up a bank account from overseas. We did it as soon as we got here. You can go to any of the bank websites and see if they have any info on that. Or email them.
And I agree with wanneroo that Perth is very pricey. Hopefully your family will be able to help out.
Okay so alot has happened...I have been told that as of Sept 1st I am getting a 50% paycut due to the economy etc... My husband has had a hard time finding work that pays well in GA. Our house is on the market to sell ( we will just get what we need to pay bank off) and or rent. In this market renting is probably going to happen faster than selling. We are moving into a friends rental that is really really cheap. I just want to go home now! Hubby is on board. So we are staying for a year to do all paperwork visas etc. Put away as much as we can to pay off negative on cars and we will still probably have the cc amounts. I have enough airline miles to cover 4 one way tickets so there is no airfare. Family all works on the mines out there so they say they will help hubby get a good paying job. We can stay with them for as long as we need to save for a rental etc and my father has already got a connection for me to work at the shire there in Northam...I think. My brother in law owns a truck business and will help husband get truck licensing etc if needed for the mines. We are selling all our furniture to try to pay off cc debt before leaving but hubby thinks we should use that to travel with and have cash when we get there to possibly buy a car ( although family said they can help us out there two as I have farming family outside toodyay that has an extra car for a temporary situation) and pay off cc from abroad. We have agreed to just go for 3-4 years to show kids another culture and lifestyle and come back! All the family is pitching in and just wants us there quickly... there is alot to do though. Should I sell everything to pay off the cc debt or take the cash with to buy furniture or older car etc ( we have a 5 bedroom fully furnished house with basement that is loaded so we have alot of stuff to either store or sell) My whole family thinks we should sell everything and just come over with clothes and what cash we can ( with a paycut that will be harder) and they will allpitch in to help until we are on our feet. Should hubby go over a couple of months ahead and start trying to get everything work wise done and money aside while I do everything here for the move?
Thanks for any advice...it is kinda scary at 33 and two kids to just sell everything and go to another country with nothing essentially but alot of very helpful family.
Are we crazy?
I am an AUS Citizen and a permanent resident of the USA for over 15 years. I have had a great life here and married and two kids to show for it but my husband and I have decided to move to Perth ( all my family is there) and show our kids a different way of living etc. Hubby is on board and we are excited. Now we are agreed on leaving we have some huge questions to ask and any help is greatly appreciated.
1. we have over 20,000 in CC Debt we are trying to pay off before we leave and are upside down ( thanks bad decisions and job loss) on cars. We are not leaving for a year to try and pay them off but the chance is we can not and still have the money required to move... what can happen to us if we can not pay it off and leave the country? Can we come back and visit? Will it cause problems getting a job etc in Perth? Can they follow us and sue us? We owe nothing to the IRS and really are looking forward to our fresh start
PLEASE disregard any comments pertaining to banks connecting with other organisations to hunt you down over credit card debts (or any personal loans/debts, for that matter). COMPLETELY UNTRUE!!!
In the scheme of things, it is only $20 000.
You are only obligated to pay the monthly minimum amount (as per contract) until such time as you can afford to pay the full amount.
Quote:
Originally Posted by janecebowers4
4. Can I set up bank accounts from here now to start putting money into so we have cash when we get there
.
Yes.
All major Australian banks have an operation/branch in the US. Go to their website and peruse the information for account opening for foreign residents.
Alternatively, your local bank in the US can refer you to an Australian bank with whom they share a relationship. This would be the ideal way as it streamlines the identification process by virtue of their stamp.
Quote:
Originally Posted by janecebowers4
My biggest concern is the outstanding debt. I am trying to pay it down and dont want to just repossess or walk away from the cars but we owe about $5000 more than what we can get privately selling it on one and $4000 on the other. I can voluntary repossess them as we get closer to moving but with what reprocussions after we leave. We dont know if we will ever move back to live but sure want to visit as my hubby is an American and he has family here too.
Thanks in advance for any advice. Not trying to run from debt at all or we would just go now. That is why we have a one year plan but it may not be enough...
A job in the mines (in WA) would take care of your financial woes.
As long as you communicate your intention to your financial institution, there is nothing about which you should worry. As in any relationship, be guided by maturity.
Best of Luck
PS - I spent 9 years in banking before joining the healthcare industry. The last three years of my banking career were spent managing the international portifolio/clients of a major bank.
If your family wants to be so helpful, take them up on it. Many don't have that luxury. I'm still bullish on getting rid of that CC debt asap - even if it's just to get it off your mind. Big move, lots of stress and uncertainties and changes coming up, it's nice to clear the decks as much as you can. So I'd sell everything and get rid of the CC debt since you've got help at this end.
As far as banks, Citibank is good. Open an account there, and one here when you arrive. You can do global transfers online, fee-free and their exchange rates are excellent. It's what I've been using for my overseas financial dealings lately.
When we moved from US to AUS we opened a bank account with HSBC before we left. In the US we got the usual ATM card, cheque book etc. but they were also able to open our Australian account from there so we had Australian accounts with ATM cards before we arrived. You can connect both the US and AUS accounts online so via HSBC website we can transfer money back and forth.
Sell all your stuff unless it's sentimental. Things are more expensive here, but the shipping cost will kill any savings. Plus, you can easily get 'interest free' terms on household items and pay them off over 12 months. And the less you ship, the easier it is. We ended up with six big boxes of sentimental stuff and just paid the excess baggage fees (prepaid was about $100 per box) so the stuff traveled with us on the flights.
Consider the idea of throwing good money after bad. If you're upside down, really think about how important it is to pay these debts off at all vs walking away. Businesses do this every day but for some reason there's a moral implication when it's personal, that's rubbish and I don't buy it. Walk if you need to.
I have an investment property in Phoenix. I could sell it and break even but instead I rent it out for $900 a month. Property manager deposits the cheques to my HSBC account in the US. Servicing the debt on this house costs me $600 a month so I'm actually ahead. Once the house market recovers (5 years or so) I'll sell the house, until then, it just feeds itself. Think about renting, but find a good property manager before you leave.
Don't worry about FICO or credit collectors. They simply won't follow you here. Plus FICO isn't used here. When you go to the bank here for a loan they don't simply bring up FICO and give you an answer. Instead it's all pesonal portfolio based. IE What's your current situation for assets vs liabilities and your current income vs expenses. Once you both land work here, it'll be pretty easy to get credit cards and the usual lines of credit. Utilities and phones etc don't even need a credit score so you can just call and turn em on. Easy.
PLEASE disregard any comments pertaining to banks connecting with other organisations to hunt you down over credit card debts (or any personal loans/debts, for that matter). COMPLETELY UNTRUE!!!
In the scheme of things, it is only $20 000.
You are only obligated to pay the monthly minimum amount (as per contract) until such time as you can afford to pay the full amount.
If you tell the credit card company that you are moving overseas and they get nervous enough about not being able to get their money back, they can withdraw the credit facility and demand full repayment usually within a time frame of 30-90 days. It's a standard clause in nearly every mortgage/credit contract (most people don't even know it exists, and yes it's in Australian mortgages too). It's unlikely that they would, but it's not correct to say that per the contract you are only obliged to pay the minimum monthly amount.
Quote:
Originally Posted by elarbee
Sell all your stuff unless it's sentimental. Things are more expensive here, but the shipping cost will kill any savings. Plus, you can easily get 'interest free' terms on household items and pay them off over 12 months. And the less you ship, the easier it is. We ended up with six big boxes of sentimental stuff and just paid the excess baggage fees (prepaid was about $100 per box) so the stuff traveled with us on the flights.
Considering the OP's debt situation, do you think it's sensible that they should go and buy more stuff on credit?
Quote:
Originally Posted by elarbee
Consider the idea of throwing good money after bad. If you're upside down, really think about how important it is to pay these debts off at all vs walking away. Businesses do this every day but for some reason there's a moral implication when it's personal, that's rubbish and I don't buy it. Walk if you need to.
BCC_1 They may have to. If they arrive with little cash and need household items, the 12 month interest free store plan is a great way to do it. They'll land jobs shortly after arriving and can pay the debt off within 12 months. Done.
And yes many Directors of businesses with financial problems too broken to fix will file bankruptcy (sole trader) liquidation/administration, rather than continue throwing their own money into a black hole. My point is simply that there is a parallel between this and a family who's financials are too broken to fix. Chapter 7 is an option.
In rereading the updated post re paying off the CC or not.... If it was me and I wasn't planning on filing Chapter 7, hell yeah I would pay that debt off ASAP. High interest consumer debt is the worse, and it's compounding interest so just paying the minimum doesn't really help you. Get that monkey off your back. Arrive broke for doing so but your situation will get better once you arrive and the broke/hard days won't last for long.
On another note, the money is important but wow, coming from Atlanta to Northam. Oh lord, do it, but prepare your fam for the culture shock. In GA you population density of 141 people per sq mile, in Western Australia it's 1 people per sq mile. It's a huuuuge place with very few people. Northam has 6000 people but you are only 1.5 hours drive to the biggest city, Perth. You're mindset of just going for a few years (save up some mullah) before heading back sounds like a good idea.
And yes many Directors of businesses with financial problems too broken to fix will file bankruptcy (sole trader) liquidation/administration, rather than continue throwing their own money into a black hole. My point is simply that there is a parallel between this and a family who's financials are too broken to fix. Chapter 7 is an option.
Directors of companies are not liable for the debts of a company. So the comparison is wrong to company directors is wrong. There's no difference between an indivdual declaring bankruptcy and a sole trader declaring bankruptcy. If someone can't afford to pay their debts there are avenues and options to assist. Running away from your debt isn't one of them.
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new update
Okay so alot has happened...I have been told that as of Sept 1st I am getting a 50% paycut due to the economy etc... My husband has had a hard time finding work that pays well in GA. Our house is on the market to sell ( we will just get what we need to pay bank off) and or rent. In this market renting is probably going to happen faster than selling. We are moving into a friends rental that is really really cheap. I just want to go home now! Hubby is on board. So we are staying for a year to do all paperwork visas etc. Put away as much as we can to pay off negative on cars and we will still probably have the cc amounts. I have enough airline miles to cover 4 one way tickets so there is no airfare. Family all works on the mines out there so they say they will help hubby get a good paying job. We can stay with them for as long as we need to save for a rental etc and my father has already got a connection for me to work at the shire there in Northam...I think. My brother in law owns a truck business and will help husband get truck licensing etc if needed for the mines. We are selling all our furniture to try to pay off cc debt before leaving but hubby thinks we should use that to travel with and have cash when we get there to possibly buy a car ( although family said they can help us out there two as I have farming family outside toodyay that has an extra car for a temporary situation) and pay off cc from abroad. We have agreed to just go for 3-4 years to show kids another culture and lifestyle and come back! All the family is pitching in and just wants us there quickly... there is alot to do though. Should I sell everything to pay off the cc debt or take the cash with to buy furniture or older car etc ( we have a 5 bedroom fully furnished house with basement that is loaded so we have alot of stuff to either store or sell) My whole family thinks we should sell everything and just come over with clothes and what cash we can ( with a paycut that will be harder) and they will allpitch in to help until we are on our feet. Should hubby go over a couple of months ahead and start trying to get everything work wise done and money aside while I do everything here for the move? 
