UK Citizen in other EU country and Repayments

pogjo

Hi,

I will be moving to Belgium soon and I am a UK citizen, born in Scotland but have lived in London for the past 4 years.

Since I left university around 5 years ago, I have had credit cards and loan debt that I have been slowly working through repaying. I had a bit of a rough bump a few years ago job wise and got a bit more of a loan to cover me. Now I am sitting with around £6,000 debt over a credit card and loans all from Halifax. It's taking me quite a while to get it down to this level as job-wise, I've never had a great salary.

I plan to keep making repayments when I move to Belgium. I'm wondering if it's the best to notify the bank of moving abroad firstly (the address they have would be the address I'd move back to if I returned to the UK). I've also read conflicting accounts of what happens if you fail to repay debt (not that I plan to but it would be good to know everything). I don't plan on living in the UK again, but do plan on visiting...I'm not going to be stopped at a border if I find myself down on luck and can't pay?

CLAPTON

pogjo wrote: »

Hi,

I will be moving to Belgium soon and I am a UK citizen, born in Scotland but have lived in London for the past 4 years.

Since I left university around 5 years ago, I have had credit cards and loan debt that I have been slowly working through repaying. I had a bit of a rough bump a few years ago job wise and got a bit more of a loan to cover me. Now I am sitting with around £6,000 debt over a credit card and loans all from Halifax. It's taking me quite a while to get it down to this level as job-wise, I've never had a great salary.

I plan to keep making repayments when I move to Belgium. I'm wondering if it's the best to notify the bank of moving abroad firstly (the address they have would be the address I'd move back to if I returned to the UK). I've also read conflicting accounts of what happens if you fail to repay debt (not that I plan to but it would be good to know everything). I don't plan on living in the UK again, but do plan on visiting...I'm not going to be stopped at a border if I find myself down on luck and can't pay?

sadly, debtor prisons have gone out of fashion
being in debt is a civil and not a criminal matter in the UK :

pogjo

To be honest, I don't plan on failing to pay, I just like to have a bit of knowledge about these things...the type of knowledge like myself today would tell my 20 year old self...not to get a credit card as a student!

zerog

If the UK remains in the EU, then you have the right to move freely between Belgium and the UK.

As mentioned this is a civil matter so you can't be detained for failing to pay in the UK.

If you give them a Belgian address, then they could in theory instruct a Belgian debt collector to harass you over there, I don't know what rules and regulations apply to debt collectors in Belgium.

The EU is taking steps towards making it easier for debt collectors to operate between multiple member states.

If I were you and will have access to a UK address continuously while outside the UK, then I would just keep the accounts in the UK, if you stop paying, then you will just get a default against your name at that address.

chattychappy

A friend of mine recently moved back to her "poor home EU country" having racked up some debt here - a loan and an overdraft. Similar amount to yours. Her income back home was a fraction of what she could get here and she was entitled to no benefits there.

She missed payments and after a few phone calls they agreed token payments until her situation improved - which it likely never would. Of course her credit rating here is destroyed.

My suggestion is keep in touch with your lenders and keep up with the payments if you can. If you can't keep up, my experience of "a big bank" and my friend was that they shower you with pointless paperwork (much of it required by regulation), but they are quite easy to deal with on the phone - freezing interest and agreeing reduced payments. They really appreciate being in touch and getting something.

I too left the UK with no intention of returning. Now I'm based in the UK again, though travel alot. Plans change, so don't assume you won't return.

I wouldn't burn bridges unless you have to. If you do, rather than attempt to "disappear", it's best to agree token payments and eventually make an offer to settle. The sorry affair will drop off the credit file 6 years later.