Leaving the country with outstanding debt

DeadMoney

Hi, I have just recently graduated from college and out of the many loans I have gotten over the past few years, all have been cleared but one. I have a remaining OD which I got back in 2008 when I stared college but the terms of which meant that repayment is not due until September of this year. I took out the max OD and it has remained on the account since with no interest running. I am now in a bit if a weird spot where I have been offered an internship in the US and I am due to leave in 3 weeks. I have actually had to take out a small loan to pay for my visa/flghts and I will be paying this back monthly from the US.

The only problem is that if I am to avail of the job in the US I have to go now, and I don't have time to hang around and repay my OD from college. The bank has not come looking for any repayments yet but I spoke with an employee about it recently and they said that it is due for repayment in September. I don't really know what to do now as I barely have enough to go to the US and I obviously want to clear my remaining debt. I have no way of getting a loan from somebody to repay this so that is not an option.

I am just wondering what will happen if the loan is not repaid in September? Basically I just need a few months to gather some money from work in the US and then I would be in a much better position to restructure it for repayment. The only thing is I have to pay back my new loan also so I don't think I can afford to be repaying two loans at once, at least not for a good few months down the line.

Sorry if this sounds very confusing but just wondering if anybody could possibly offer any advice?

Thanks!!

Oral Surgeon

How big is this OD compared to your new loan, you dont need to give actual figures if you dont want, percentage or ratio will do...

I know that your OD is interest free but probably wont be after September so I'd get one bigger loan to cover your flights etc and the OD then slowly pay it off when you can...

Your debt will follow you, the bank never forgets....:D

DeadMoney

Oral Surgeon wrote: »

How big is this OD compared to your new loan, you dont need to give actual figures if you dont want, percentage or ratio will do...

I know that your OD is interest free but probably wont be after September so I'd get one bigger loan to cover your flights etc and the OD then slowly pay it off when you can...

Your debt will follow you, the bank never forgets....:D

My OD is 1,600euro and my new loan is 1,800, sorry I prob should have given figures. I let the OD take a back seat in relation to my other debts I had over the past year as these were gathering interest while my OD was not. Despite having paid back all of my other loans my credit rating is not good as being a student and struggling for money, a lot of my repayments were late. I was even told I have a bad credit score but fortunately I had been saving with the Credit Union for a few years so they gave me the loan for flights & visa.

If I was to go back and do a masters or if I was repeating the year in college, then my OD would be updated for repayment Sept next year as opposed to this year. But I assume they would look for some proof like a letter from my college stating this etc. Either way I am going to America but really want to try and sort this somehow before going. Perhaps I should go in and talk to somebody in the bank and explain my situation. Although I doubt they would be too willing to do anything for me since I have had 3 years to pay it back already. They were handing this OD out like candy with no required guarantor or anything, lol should have known I'd end up in a jam like this :rolleyes:

tHE vAGGABOND

One warning, I left ireland at very short notice 10 years ago [job offer I could not refuse]. I had a couple of loans and a cc card balance outstanding at the time.

Due to some mess up's on my part I missed literally a couple of payments on them after I moved. That was all sorted, and the loans were paid off on time, cc balance cleared with no other issues.

When I moved home and went to buy a gaff, I had 3 black marks on my credit history, and almost did not get mortgage [and assume I would not now, with things more strict].

So ensure that your repayments are covered, as any delays or mistakes will be on your credit record for ages.

DeadMoney

tHE vAGGABOND wrote: »

One warning, I left ireland at very short notice 10 years ago [job offer I could not refuse]. I had a couple of loans and a cc card balance outstanding at the time.

Due to some mess up's on my part I missed literally a couple of payments on them after I moved. That was all sorted, and the loans were paid off on time, cc balance cleared with no other issues.

When I moved home and went to buy a gaff, I had 3 black marks on my credit history, and almost did not get mortgage [and assume I would not now, with things more strict].

So ensure that your repayments are covered, as any delays or mistakes will be on your credit record for ages.

Thanks, yeah this is obviously a concern. Although as it currently stands I have a black mark beside my name now as I was told this in the Bank of Ireland when I applied for a loan a few months ago. This is because of how late my repayments were the last year in college. Apparently this stays for 5 years and then is reset back normal according to the employee in the bank. I have no plan to return to Ireland to live in the near or distant future and my goal is to get sponsored for a visa in America. Failing this I would either end up in Canada, Japan, or somewhere else. This has always been my plan and has nothing to do with debt, I just don't plan on ever settling down in this country (at least not for a very long time). On saying this, I still don't want to damage my credit rating or have this follow me around in other countries where I may end up settling and possibly applying for a loan at some stage.

I don't know, if I could somehow show that I am returning to college for the year, that would buy me another year to gather funds to repay, although to do this I would have to forge some sort of letter and I'm not too enthusiastic about that.

sarahlulu

Did either of your parents sign an indemnity for the loan? If so the bank will go after them.

DeadMoney

sarahlulu wrote: »

Did either of your parents sign an indemnity for the loan? If so the bank will go after them.

No, they didn't require any indemnity for it as it was a student over draft and was very easy to get at the time.