Non-US Citizen Wonders About Credit Card Debt
Added January 19, 2009 by Ilyce R. Glink and Samuel J. TamkinSummary: A non-citizen in the United States legally as a student wants to know about credit card debt. He has racked up quite a bit of debt and wonders about what would happen if he left the country without paying his credit card debt. In this situation he should do what anyone facing credit card debt should do: seek credit counseling or work within the system to find a way to pay his debt. This way, in case he ever wants to come back to the United State, he can do so without the credit card debt hanging over his head.
Q. I'm not a US citizen, but I am here legally, studying at a university.
I have accumulated some credit card debt. What would happen if I leave the country after I finish my education without paying my debt? Is there any international law that would apply? Could they find me in my home country?
What could be the consequences of this situation?
A. Frankly, your question is quite problematic and disturbing. If you are in financial difficulty, you can seek credit counseling help. If you need time to pay your debts, you can structure a repayment plan. If you are so in debt that you can't cope, you can file for bankruptcy.
It's hard to imagine that you're even contemplating the idea of running up $20,000 or $30,000 in credit card debt and leaving the country. It's shameful.
The only advice you should receive is to pay your debts. You've made use of your credit cards and should pay them off. If you can't, you should work within the system to negotiate a payoff or pay them over time.
If you simply leave the country, the credit card company will eventually charge off the debt and destroy your credit history and credit score. If you change your mind and want to come back someday to establish a life, get a job, buy a home and raise a family, you might find the specter of your foolishness coming back to haunt you.
Published: May 21, 2004
See more articles on this topic by clicking on the "RELATED ARTICLES" above and to the right.
We have over 5000 articles on Real Estate Advice, Personal Finance Advice and Consumer Advice on our site. We encourage you to look at these articles. As always, if you have a comment on our articles, don't forget to post your comment below. We thank you for coming to ThinkGlink.com.
© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.
Additional Topics
(View All Topics)bad credit bankruptcy consumer advice credit credit card debt credit cards credit counseling credit history credit report credit score debt interest rates mortgage personal finance personal finance advice
Related Articles
Related Blog Entries
Top Rated Articles
Related Videos
How Does Negative Information Affect Your Credit Score?
Your credit score is determined by looking at a co...(4:39)
Who Has An 850 Credit Score And How Do You Get One?
Credit scores, on the scale assigned by FICO, rang...(4:39)
What Will Canceling Credit Cards Do To My Credit Score?
Which credit cards should you cancel to have the l...(4:39)
Comments
aavark says
I'm trying to find the answer myself. I'm not allowed to work in the country, yet the stipend was so low, it was inevitable to use the credit cards to survive. I want to work out some kind of a solution so that I can pay the dues from abroad, but understandably I do not want to approach my bank, as they might (well, will) freak out, and try to collect before I leave. The only problem: my job back in Europe might pay so little that I simply would not be able to cope. I hate this trap. This is something they don't talk about when postgrad studies in the US discussed; that you simply can't live on 16 000 a year (health insurance and tuition fees are not included), and you'll have a huge cloud over your head by the time you finish. If someone has a suggestion, please share it with me.
Ilyce says
Aavark: It is difficult to live at the poverty level, which is what $16,000 per year is. You're lucky that health insurance and tuition fees aren't included in that amount. My own health insurance premiums cost nearly $20,000 for a family of four. There really isn't a good solution if you feel as though you'll never be able to pay this back. Are there any other stipends or awards you could win that would provide you with additional cash? Can you get a job within the University that would qualify under your education visa but would assist with living expenses? Talk to the financial aid office to see if there is anything you can do. Just be aware that while a student loan (if you can get one) would probably carry a lower interest rate, would not be dischargable should you file for bankruptcy in the future. Good luck.