Student loans and emigration - help please!

OpenSalad

Wonder if you could help?

I have approximately £7,500 to pay in loans (£3k on a student overdraft which Halifax will soon be calling time on and the the rest in a Career Development Loan).

I will soon be emigrating to the US (as my wife's UK visa is running out and I have permission to live there) and will be out of work for an indefinite amount of time until I find new employment. This therefore means I'll be unable to pay the Career Development Loan and need to find a solution to the overdraft.

My question is what do you think I should do? I'm looking at loans, Credit Cards and such like on both sides of the Atlantic but I'm getting lost! Does anyone out there have any advice?

Thank you.

BillJones

I'd suggest selling everything that you can to try to pay the overdraft off, and then, if that's not enough, delaying your departure until you've covered the balance.

It's only the overdraft that needs clearing upfront, presumably, so work on that, and then deal with the loan a month at a time.

Tixy

A new loan or credit card isn't going to help you as you'd still be unable to meet the repayments. And you'd likely struggle to get them if you are not working currently (or if you have resigned from a current job).

I would try to arrange a repayment plan with the existing creditors at a reduced rate explaining that you are out of work. It will affect your UK credit file but whether that matters to you is likely to depend on whather you are planning to emigrate long term.

Do you have any assets you will be selling before you leave which you could use to either help with ongoing repayments or make a lump sum payment to reduce the debts (e.g. a car or anything).

OpenSalad

Thanks for your replies. I'm currently earning approx £19k/annum so money is coming in but not really enough to pay off the overdraft before departure.

I fear I have to do SOMETHING about the overdraft, so my prime concern is that. I have no assets right now so nothing really to sell off.

What do you think to one of the credit card deals I see on this site? 0% balance transfers to cover it then find a way to pay it off when I'm established over there. is that do-able?

Tixy

Are you certain that halifax are going to call in/recall the whole overdraft?

Is it not just that they are going to start charging interest? or recall the overdraft in stages? or convert to a rgular overdraft rather than student one?

Even if they do recall it in full it is usually possible to agree with a bank to repay the overdraft in monthly installments.

I wouldn't try moving the debt elsewhere. However regarding the balance transfer cards - first you'd need to get accepted for one of the few cards that allow money transfers (most don't) with a high enough limit and offering 0% on money transfers. That might be tough given your salary and existing debt commitments based on perceived affordability.

BillJones

If you've no assets and can't work in the US, then how are you going to support yourself, eat, look for work, etc? Surely you must have a decent pot of savings if the two of you are flying so far to a new life. Can't you dip into those for the moment?

OpenSalad

We have no assets, and it's my wife's family whobare both paying for the flights and putting us up until we get settled. So no pot of money either, unfortunately!

I see what you're saying - negotiate with the lenders instead of transferring the debt elsewhere. The student overdraft will be converted to a regular overdraft, but I am afraid of the standard overdraft charges Halifax imposes.

But I'll speak to the lenders themselves and see if that bears fruit first.