What Happens to Unpaid Credit Card Debt if You Move Abroad?

Debt can weigh you down. While it’s a heavy burden at times, there are only a few ways to get rid of it. Some people opt to pay off the debt, while others let it go into collections. If it gets to be too much, people may even opt for bankruptcy, although it’s a last resort. Are there other ways to abscond from paying? Some have tried moving abroad with unpaid credit card debt. In such cases, what happens to the debt? Follow along to find out.

What Happens To Your Debt When You Move Abroad?

When you move out of the country, you are still obligated to pay your debt. It does not just go away. Instead, your debt may be sent to collections, or a suit may be brought against you by the collection agency. Not paying will also damage your credit score. This will be determinantal to you if you return to the United States. Failure to satisfy your financial obligations could also lead to passport revocation.

If you seek to establish residency in the country you move to, your debt can also be problematic. If they run your credit report as part of the residency process, these negative debts and associated marks to your score can make you ineligible. Foreign creditors may also be reluctant to let you borrow from them as well.

Authorized Users

If you are operating as an authorized user, moving abroad with unpaid credit card debt can be a problematic strategy. If you skip town, the debt obligation will go to the owner of the main account. They will be held legally responsible. Leaving it up to someone else to pay off your debt obligations will likely damage you and their relationship.

What to Do Instead?

If your debt is large, there are steps you can take. First, sit down and take stock of all your credit card debts. When you calculate the total, think realistically about what you can afford to pay. Then call the creditors. Talk with them and set up an automatic repayment plan that works within your budget and lifestyle.

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