Paying debts from abroad, address and exchange problems (complicated!)

LycheeGirl

Sorry this is a bit of a tangle! I could really do with some advice about what to do.

I've about £8000 of debt in the UK with various banks and credit cards. I was unemployed and started paying them a token amount of £1 a month. They haven't frozen the interest or accepted the payments, and still say they will be passing it to debt collectors.

I'm now working abroad in Singapore and I'm not sure what to do about letting them know where I am. I don't want to give my address as it's closely linked to my employer and I don't want my boss to know all about it.

Also the currency here is tanking at the moment, and I don't really want to increase my payments to the bank in UK pounds. It would be much better to save my money here and convert it when things are better to pay off the debts, also that way I can avoid paying big fees to transfer the money all the time.

I'm not asking for help to run out on my debts, just want to be in a strong position with the bank and not use up all my income on a crappy exchange rate.

Realistically I don't think they can send debt collectors after me here, so just wondering what kind of position it leaves me in if I let things ride about telling them where I am, or if there's another course of action available to me that would be better.

If you can advise it would be really helpful, thanks.

LycheeGirl

I'm not loaded over here by the way, just doing an average job.

LycheeGirl

Just wondered if anyone had any ideas.

tking

Hi Lychee Girl,

Do you still have;

a. a UK address (parents etc?)
b. a UK Bank account?

If you have an address it is likely that all relevant mail will be sent there - if not, then it will probably be 'returned to sender' and they may think you've done a runner.

Is it possible to have a Post Office Box in Singapore? That way you could send them all letters to say you are living and working in Singapore and will be continuing with the token payments until you can afford to pay more. If you can't get a PO Box and don't want to give your street address it may make things more difficult - it's always better to keep the companies up to date with your circumstances so you can always prove that you're doing your best to pay the debts off.

If you have a UK bank account the companies may try to take money from there - using direct debit details. Might be worth cancelling any remaining direct debits while you make your token payments.

Also, when you can transfer money to make payments don't necessarily only look at the banks consider a HiFx company as they generally offer a better rate and lower fees.

Best of luck with it all.

LycheeGirl

Hey thanks. The mailbox idea is great! So do you think if I make minimum payments, then increase it when I get a chance it will keep them off my back?

I read another post about making a final settlement offer, so I suppose when I have saved up some money I can do that.

tking

I'd certainly keep making payments and saving what you can - full and finals definitely seem to work quite well and if you've already defaulted by paying less than the minimum then it won't make any difference to your credit report.

Do all the MSE things - write a realistic budget, save money on outgoings where you can and save for emergencies etc. - then save any extra towards your F&F payments. Good luck.