Call Now

(844) 845-4219

What Happens to Unpaid Credit Card Debt if the Borrower Moves Abroad?

Epic Loans Editorial Team


Although moving abroad can be an exciting experience, there may be concerns regarding the financial obligations left behind, often leading one to wonder: “Does debt follow you to another country?” or “What happens if you owe money in another country?”. In this blog, we will explore the complex topic of handling unpaid credit card debt when moving abroad.

This includes important issues like whether moving abroad exempts a person from credit card debt, strategies used by credit card companies to collect overdue payments, and crucial advice for handling credit card debt before the shift.

Will I Be Able to Avoid Credit Card Debt by Moving Abroad?

Even if your debt is in collections, no law prevents you from relocating abroad. Regardless of your residence, you are bound by contract to repay any money borrowed in the United States.

It may be more difficult for creditors to find you and collect the money you owe if you are abroad. However, continually avoiding them could result in greater problems like tax complications and lawsuits. You will have very few options for obtaining credit or loans if you return to the United States in the future.

How will the Credit Card Company Reclaim My Debts?

The question then arises: What happens if you owe money and move to a different country? When you do not pay the balance on your credit card, the credit company will typically begin collection efforts, including telephone calls and letter writing. This continues for roughly two or three months, after which they will turn over your debt to a collection agency to collect on their behalf.

Thus, debt can follow you to another country through collection agencies. These collection organizations are aware of the laws governing debt collection in different countries. Therefore, your credit card company may use a collection agency in the nation where you have relocated. In this manner, they can avoid any restrictions or laws that might make it difficult for them to find you for the balance that is due to them.

Read More : Does Debt Consolidation Hurt Your Credit

Does Moving abroad affect my credit score?

Maintaining a good credit score is the main reason behind making timely credit card payments. It may not seem like an issue when you relocate overseas with an outstanding credit card debt. However, failing to pay off your debt will lower your credit rating. Your score will continue to be affected when you return to the United States.

Paying Taxes on Credit Card Debts

Your creditors may give up going after you for credit card debts after a while. But the IRS will view that amount as revenue that you have to declare on your taxes and pay for. For example, if you owe your credit card company $20,000 and never pay it, the $20,000 will be considered as income by the IRS and will be subject to taxation.


Could Creditors Sue Me for Unsettled Credit Card Debt

Even if your creditors or debt collectors cannot locate you, you could still end up in court. The court may rule in favor of the creditor or collector without a full trial if you are not present to defend yourself.

After that, they might take your assets in the US, including any money you make from a job or personal belongings. It is worth noting that these court rulings can be lengthy, so even if you wait and return to the United States, they might still seize everything that you own.

Managing Credit Card Debt Before Moving Abroad

Relocating overseas while holding outstanding credit card debt may appear like a short-term fix, but the effects may be long-lasting. It’s a good thing there are steps you can take to manage your credit card debt before moving.

Negotiate With the Credit Card Company

At times, credit card companies will be open to discussing different payment plans or providing hardship programs to customers with a track record of on-time payments. Consider contacting your creditor to let them know about your situation and arrange a repayment schedule. Working with your credit card issuer may even result in lower interest rates or waived fees.

Read More : How to Negotiate Credit Card Debt

Apply for a Personal Loan

Opting for Personal Loans is an effective method for consolidating your credit card debts. You can pay off your debts with a fixed-rate debt consolidation loan. Compared to credit cards, personal loans usually have lower interest rates, which means you can save money in the process.

Repayment Strategy for Debts

Managing credit card debt requires the use of efficient payment techniques. Paying your bills on time can help you pay off debts quickly. To guarantee on-time debt repayment, consider going above and beyond the 2% to 3% of the minimum monthly payment suggested by credit card issuers or establishing automatic monthly payments.

Making payments on time can help you save more money because banks usually make money from the interest.


So, does debt follow you to other countries? Absolutely. And this can impact your assets and financial stability both overseas as well as when you return to the US. Creditors can pursue unpaid debts in a number of ways, such as hiring collection agencies or taking legal action.

If you’re looking for effective solutions, consider exploring credit card debt consolidation loan options. Visit Epic Loans for tailored assistance and informed expertise in managing debt. Our wide range of lenders and service providers are skilled at customizing debt consolidation plans to meet your unique requirements. Book a free consultation today to find the best solution for you.

Frequently Asked Questions

Does debt follow you to other countries?

Your debt does not vanish into thin air when you move, but if you are living abroad, it can be more difficult for credit card companies to track you down in order to collect it. Thus, debt can follow you to another country as debt buyers or collection agencies will continue to make efforts to receive their payments, which may have lasting financial consequences.

Why shouldn’t you move abroad with unpaid credit card debt?

Traveling overseas with outstanding credit card debt may seem trivial, particularly if you have no assets that credit card companies can seize. That being said, your credit score will still suffer if you default on these debts, and you will have to deal with the fallout from that lower credit score when you return.