Opinons/advice on consolidating or transferring debt from home country to new country

[maddie8011]

Hi all, I’ve been living abroad now for about 6 months (moved from the US to Sweden). I am wanting to consolidate my credit card debt from the states into Sweden, and eventually my student loans - but the latter is more of a future goal. I can make all the monthly payments, it’s just a pain having the debt in different countries.

I am hoping to hear advice, opinions, or personal stories from people who have done something like this. What set up did you settle on (e.g. using personal loans in the new country vs opening credit cards in new country). Were you happy with the choice? What are some things you wish you knew before starting? What are some challenges you faced? Etc.

Thanks everyone hope you’re holding up well given covid-19 restrictions.

 

[azariyah]

@maddie8011 I have never done what you are doing for personal but I have done business across borders and used to be a banker. It’s usual for businesses to have this issue too.

I would think the best bet is call your bank (checking) in the US and see if they have a corespondent bank in Sweden. Have you checked with the local banks there. ?

I

 

[maddie8011]

@azariyah Yes, there are no branches of my US bank in Sweden.

I opened an account here in Sweden and have an appointment next week to discuss my options with them as well

 

[johntf]

@maddie8011 Interest rates in Sweden are generally lower so it's probably worth getting a loan from a Swedish bank and pay off the US loan.

How long have you been working in Sweden?

I would also recommend the sub r/tillsverige. Consider posting in there. There might be other people in a similar situation.

 

[maddie8011]

@johntf Moved here for work, so 6 months. I have a good salary as well, above the mean and median with no dependents either. But obviously little to no credit here lol. Which it just takes time to build so no stress.

Thanks for your input! I’ll cross post

 

[johntf]

@maddie8011 Then I think you'll have to wait a year or two before you can get a loan.

Create a new post there since cross posts usually get hidden on mobile.

 

[azariyah]

@maddie8011 Good. Also try any branch of a large US... Chase, Bank of America. If you think about it, depending on the exchange rate it would be nice if you could pay local debt with $USD. Good luck

 

[resjudicata]

@maddie8011 Banks in Europe are very conservative when it comes to refinancing debt, especially foreign debt, if you have no intangible securities to offer - unsecured debt over maybe 10k EUR (should be something like 90k SEK) is very hard to find.

Most credit cards in Europe also need to be paid in full every month, the minimum payment while carrying a balance forward is very uncommon. So if your idea of debt consolidation is to take out a personal loan to settle your overseas debt and pay it off locally in monthly installments, that could work; simply transferring it to another credit card most likely won't.

 

[maddie8011]

@resjudicata That works out, the debt I want to consolidate here is about 10k.

What you described is my plan ideally. Not looking for a way to work the system, just trying to get everything in one place and not deal with exchange rates.

Thankfully (i looked it up after reading your reply) the bank I have in Sweden allows credit card payment in “installments”. Which from my understanding means I don’t need to pay it in full each month. But - I would definitely prefer a loan if I am I approved. Not looking for more credit cards haha

Thanks for the info!

 

[littlequietsoul]

@maddie8011 I have money on both sides