While you’re out of the country, debt will continue to accumulate, with fines and interest added to existing balances. If you’re having trouble keeping up with your payments and are planning to leave the country, you should talk to a financial professional about bankruptcy or debt consolidation. And if you’re struggling with debt, you might not have access to those funds, let alone the money you need to establish a residence in a whole new country.
Can debt collection agencies track you in another country?
The good news is that once you move, it will be harder for a debt collector to find and sue you. The bad news is that if you ever have to return to the US, you’ll pick up your old credit score right where you left it. Just like here, you can start from scratch by taking out the simplest forms of credit first, such as a department store credit card or a secured loan (one associated with an asset, such as a car loan).
References:
- Moving abroad to escape unpaid debts – what happens? – Scotland Debt Solutions
- Does Debt Follow You to Another Country? – OppU
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.