Dealing With Debts in Another Country

April 13, 2012 by  Filed under: Credit 

There are many laws that are only applicable in one country, which means that anyone who is already based in another is already exempted from it. This is not the same case when it comes to debts though. If you have incurred debts in another country, you are still obligated to repay it according to the terms set by the creditor. Of course, if you fail to repay as stipulated in the terms, then you could be subjected to legal maneuvers just to compel you to abide to it. This is the reason why you should never just ignore the said debts just because you are already based somewhere else.

If you are capable of repaying the said debts, it should be easy for you to process your repayment from abroad. You could actually do this through your own bank account. You should just take advantage of the online banking features of the bank where you have your savings. Bank transfer, apparently, does not have to be done in the bank. You could do it in the comforts of your home through the internet. The entire process would not even take you ten minutes to perform. Of course, you may also opt for the more traditional option which is to go the bank and transact the money transfer from there.

The problem though would be if you do not have the capability to repay the said debts. You may decide not pressure yourself into repaying if you feel that you do not have the capability to do so. But the problem is that you also complicate matters. Ultimately, you would have to carry burden created by the interest rates. Worse, you may even have to face legal sanctions, which would not only cost you money for hiring a lawyer but also for the penalties.

Your incapability in repaying the said debts should not even be a major issue. What you simply need to do is to acquire a new loan in the country where you are currently based. If this happens to be your home country, this should even be easy. You just need to present some form of security or collateral and the financial firm or the bank would certainly approve your request for loans. You do not have to tell the bank the purpose of the loan. Most creditors are after your capability to repay rather than the reason why you are requesting for a loan.

It is best that you never cut communication lines to the creditor in the other country where you acquired the debt. This would let them feel that you could be trusted to repay them even if you are already thousands of miles away and in another country. By establishing healthy communications with the creditor, you may still even be able to negotiate for more lenient treatment if ever you feel that you could not repay the loan according to the conditions that you have agreed to before, when you were still applying for the said loan.

Jim Oneil is a writer with a special interest in debt issues and personal finance. He has written for small local newspapers in the past and now devotes part of his time writing about debt as well as UK based financial products.

Article Source:
http://EzineArticles.com/?expert=Jim_Oneil

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