Leaving unpaid credit card to go travelling.

MJS1991

So I am leaving the UK in March to go travelling for around 2 years, possibly longer.
I have a couple of credit cards which will have around £800-£1000 left to pay. I won't be able to pay this off as I need all the money to travel. I am moving to Australia on a working holiday visa. Obviously it's not wise to leave behind debt, but with it being a small amount compared to what I've seen on other forums, is it more likely it'll be just wiped? Should I tell my bank I'm planning on leaving the country?
Any help/advice would be appreciated!

BorisThomson

Wow.

No, it won't be wiped. They can (and will) chase you for six years.

Paying your debts should take priority over your jolly to Oz.

Ebe_Scrooge

So, it would seem it's school holiday time again.


So, you should pay off what you owe - if needs be, cancel your holiday and use the money to pay off your debts.


So, I'm calling troll.

StopIt

No, of course it wont be wiped.


It'll be defaulted, sold to a DCA, and you'll potentially come home to a CCJ against your name and a trashed credit file.


Telling the bank you're leaving the country and not paying the debt will just result in them closing any other accounts you have with them, as well as the credit card, of course.


If you're on a working holiday, use some of the funds you get while working to pay off the credit card gradually, as you would do if you were still in the UK. You can pay credit card statements by bank transfers, so being in Oz wont affect the ability to pay.

Dobbibill

I echo what others have already said - No, it won't be wiped.

Continue to make at least the minimum payments.

When you get back from your travels, you could have a default/CCJ etc.

This could impact your ability to rent, apply for credit including a standard bank account with an overdraft, car insurance, the list is endless and will stay on your credit file for 6 years.

MJS1991

I would be happy to continue to pay them, in all honesty I didn't think that would have been doable but from what you're saying, it seems like it is.
Is my best bet explaining the situation to my bank and coming to some sort of agreement to continue to pay something?

stevenhp1987

MJS1991 wrote: »

I would be happy to continue to pay them, in all honesty I didn't think that would have been doable but from what you're saying, it seems like it is.
Is my best bet explaining the situation to my bank and coming to some sort of agreement to continue to pay something?

Then continue to pay them? If you make an arrangement to pay less than what is due, that will lead to a default which will make your life difficult when you return from Oz.

Why did you arrange a trip to Oz without paying off your debts? If the banks think you're purposefully trying to escape the country without paying, you could end up with a CIFAS (fraud) marker.

You should have sorted out the debt before arranging to go.

Can I assume that some of this debt was built up arranging flights, hotels etc? If so, you'll more than likely end up with a CIFAS marker as you knowingly built up debt without any intention to ever pay it off.

Candyapple

When you come back to the UK be prepared to:

1. Not being able to open a bank current account and your only options would be to try and see if you can open a basic account, or failing that, you will have to pay monthly for one:
http://www.mycashplus.co.uk/products/current-account.aspx

2. Not being able to have a 'normal' credit card for up to 6 years and only having access to the subprime market cards such as Capital One, Vanquis etc. which only usually give credit limits of £100-£250 and have eye watering APRs.

3. Not being able to buy anything on credit or finance e.g. a sofa, a mobile phone contract, a laptop, a car etc.

4. Not being able to get a mortgage or being restricted to a handful of lenders who will charge high rates because you have a default(s)/CCJ.

All of the above lasts for 6 years so whilst you may think you won't be that bothered, I'm pretty sure not being able to access mainstream credit for that long will eventually get to you when you find it restricting your lifestyle and having to save and pay for everything before you can do anything. Not that saving for things is ever a bad idea, but in some instances say for example holidays, the luxury of being able to stick it on a 0% purchases card for 3 years to spread the cost etc. those options won't be open to you.

MJS1991

Oz was arranged at a time when the credit card would be paid off. Unfortunately unexpected things happen, my car is essential for work and needed some work doing which I had to put on a credit card. Australia was planned so I'd have no debts to leave behind but these things happen.

Edi81

Sure! Leave it to paying customers to pick up the tab so you can go on a working holiday!

You should be sorting out your financial situation BEFORE going on an extended jolly.

As others have said you can transfer funds back to the uk to pay your debt off.

Potbellypig

MJS1991 wrote: »

So I am leaving the UK in March to go travelling for around 2 years, possibly longer.
I have a couple of credit cards which will have around £800-£1000 left to pay. I won't be able to pay this off as I need all the money to travel. I am moving to Australia on a working holiday visa. Obviously it's not wise to leave behind debt, but with it being a small amount compared to what I've seen on other forums, is it more likely it'll be just wiped? Should I tell my bank I'm planning on leaving the country?
Any help/advice would be appreciated!

In an ideal world, paying off your debts to go on holiday is the correct solution. However, we don't live in an ideal world.

If you can't afford to pay off your card before you go, then why not just ensure that the minimum payment is made every month whilst you're out there. Of course you will barely pay anything off it, but you'll have peace of mind that your credit will be intact when you come back.

If you don't pay it, then you will come back to being a sub prime customer in which you will pay top whack on interest and will generally struggle for credit per say. No-one dies either way though, so have fun.