For most of us, taking on a certain level of debt is simply a part of life. Whether it’s a hefty credit card debt or the multi-year commitment of a home loan, most people will borrow money and need to pay it back at some stage.

The quicker you pay the money back the better off you’ll be, but debt can become even more complex and confusing when you move abroad to Australia. Let’s take a look at how overseas debt works and how you can pay your creditors as quickly and easily as possible.

Search and compare international money transfers to pay off your overseas debt

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Name	Product		Filter Values	Fastest Transfer Speed	Fees (Pay by Bank Transfer)	Learn More
TorFX				24 hours	$0	Go to site View details	TorFX guarantees to match any competitor's exchange rate. Conditions apply. TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.		loading Fetching your data...
Send Payments				24 hours	$0	Go to site View details	Send guarantees to match any competitor’s exchange rate. T&Cs apply. Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.		loading Fetching your data...
OFX				24 hours	From $15	Go to site View details	OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.		loading Fetching your data...
Western Union				Within minutes	From $0	Go to site View details	Western Union sends money online to friends and family in 200+ countries around the world.		loading Fetching your data...
XE Money Transfers				Within minutes	$0	Go to site View details	XE has fast transfers with low fees and a range of foreign currency tools.		loading Fetching your data...
TorFX				24 hours	$0	Go to site View details	TorFX guarantees to match any competitor's exchange rate. Conditions apply. TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.		loading Fetching your data...
Send Payments				24 hours	$0	Go to site View details	Send guarantees to match any competitor’s exchange rate. T&Cs apply. Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.		loading Fetching your data...
SingX				Within minutes	0.45%	Go to site View details	Pay no fees on your first two transfers, up to $3,000. SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.		loading Fetching your data...
Wise (TransferWise)				24 hours	From 0.35%	Go to site View details	Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.		loading Fetching your data...
Instarem				Within minutes	From 0%	Go to site View details	Instarem offers simple transfers with a flat 0.5% transfer fee for most transfers.		loading Fetching your data...
Remitly				Within an hour	From $2.99	Go to site View details	Special offers like free transfers and better exchange rates available for new customers. Remitly has quick, affordable transfers around the world, with both express and economy options.		loading Fetching your data...
CurrencyFair				Within minutes	From $0	Go to site View details	Special offer: New customers get unlimited fee-free transfers for their first 3 months. T&Cs apply. CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.		loading Fetching your data...
WorldRemit				Within minutes	$1.99	SPECIAL OFFER ✓ Use the code ‘4FREEFINDER’ to get 4 free transfers if you are a first time user. Eligible countries only. Go to site View details	Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply. WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.		loading Fetching your data...
MasterRemit				Within minutes	From $1	Read review View details	Send money in minutes at competitive exchange rates with this Australian money transfer service.		loading Fetching your data...
SingX For Large Transfers				Within minutes	0.45%	Go to site View details	Pay no fees on your first two transfers, up to $3,000. SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.		loading Fetching your data...
WorldFirst Business Transfers				24 hours	From $0	Go to site View details	All new customers who send more than AUD$10000 in June and July are eligible to receive a $300 Woolworths gift card. Conditions apply. Open bank accounts in Australia, the UK, US, Canada, Japan and Europe. Send and receive funds with zero fees for large sums, including same-currency supplier payments.		loading Fetching your data...
Airwallex				Within minutes	$0	Go to site View details	Airwallex can help you make business payments to 23+ currencies using competitive interbank rates and no fees for most transfers.		loading Fetching your data...
TorFX Business Transfers				24 hours	$0	Go to site View details	TorFX guarantees to match any competitor's exchange rate. Conditions apply. TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.		loading Fetching your data...
Send business				Within minutes	$0	Go to site View details	Send guarantees to match any competitor’s exchange rate. T&Cs apply. Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.		loading Fetching your data...
OFX Business Transfers				24 hours	From $15	Go to site View details	OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.		loading Fetching your data...

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If you can’t find what you’re looking for, you can have a TorFX currency expert contact you for free

• What happens when I submit this form?

  After you submit your details, a TorFX consultant will contact you via the phone number you provide for a free consultation. You will typically receive a response within 1 business day.

  TorFX is an international money transfer specialist and has an office based in Surfer's Paradise, Queensland. Its AFS Licence number is 246838. We will not collect your personal information unless it's necessary to provide the information, advice or service you've requested and, where possible, you'll be able to use our services anonymously.

• Why would I want to use this form?

  If you have never transferred money before or have a large amount of money to transfer (like paying back an overseas home loan or receiving an inheritance), you may feel more comfortable speaking to a person instead.

Common overseas debts

Because debt is such a widespread part of life for many, it’s not unusual for people to owe money when they plan to move overseas. Some of the most common outstanding debts you might be facing include:

But despite the fact that you still owe money, sometimes life changes and you decide you want to move abroad. Whether it’s your career, romance or even a simple desire for adventure that prompts you to move to Australia, you can still do so even if you are in debt.

Can I leave my debts behind?

In many cases, your debt won’t stop you leaving your home country and heading to Australia, but that doesn’t mean you’ll be able to leave those old debts behind and start life Down Under with a clean slate. Of course, what will happen to your debt (and to you) will vary depending on a wide range of factors, including the amount you owe, who you owe it to and the laws in your home country surrounding debt repayment.

There are several potential outcomes, including:

Arrest

If you owe money to the government in your home country, you could be arrested at the airport before you even depart. Alternatively, you may be refused permission to head overseas and have your passport seized.

Your credit history will suffer

If you try to skip out on your debt or fail to make repayments on time, your credit file will take a battering. This could have devastating consequences in the future if you ever plan to return to your country of origin. Your credit history could also catch up with you overseas – it all depends on whether any lender you approach for financing asks for details on your credit history in your home country.

You may face legal action

Your creditors may take legal action against you to recover their debts, and this action may continue regardless of whether or not you’re in the country and able to attend court. While an overseas court may not be able to force you to pay your debt from overseas, it could allow creditors to go after whatever assets you still have in your home country.

You could lose some of your salary

If you work overseas for a company based in your home country, your pay could be garnished or withheld. For example, if you’re a US expat who works in Australia for a company based in the USA, that company is subject to US laws and may be required to dock your wages to pay off your debts.

Your creditors could catch up with you in Australia

There are plenty of other ways your creditors might seek to reclaim the money they are owed. For example, the ATO has agreements in place with tax and revenue services in many other countries around the world to force debtors to pay their bills. Banks or credit card providers may also send debt collectors after you in your new country of residence to try to reclaim their debt.

How to deal with overseas debt collectors

Dealing with debt collectors can be a worrying and intimidating experience for many, but it’s something you may have to do if you want to get your finances back on track. The best approach is to get on the front foot and work out a reasonable and affordable agreement to help you pay back the money you owe. By showing that you are willing to work to pay off your debt as quickly as possible, you will take some of the sting out of the situation.

It’s also important to remember that you have rights when dealing with debt collectors to ensure that you are not harassed, intimidated or treated unfairly.

How to pay off an overseas debt

The hard part of paying off an overseas debt is saving enough money to repay what you owe; the act of sending money overseas to your creditors is actually quite easy.

To get the necessary funds back to your home country you will need to send an international money transfer. There are 3 main ways to do this:

Through your bank

You can send the money from your Australian bank account to an account in your home country. This is usually the most convenient option (because you will already have an account set up and ready to go) but in many cases will also be the most expensive.

Through a cash transfer provider

Companies such as Western Union and Moneygram offer fast cash transfers from Australia to hundreds of thousands of agent locations around the world. This is a good option if cash is an accepted form of payment and if you need to pay off your debt as quickly as possible.

Through an online transfer provider

These companies, such as OFX and Wise, specialise in sending international money transfers. They tend to offer the best exchange rates and lowest transfer fees.

If you want to find the most cost-effective way to transfer money overseas, specialist online transfer companies will usually win out. However, you’ll need to compare international money transfer providers to find the best exchange rates and lowest transfer fees.

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How to choose a money transfer provider

There are several factors you need to consider when choosing a company to handle your international money transfer, including:

Exchange rate

As Debbie’s example shows, a minor difference in the exchange rate can make a huge difference to the affordability of your transaction. Shop around for a company that always offers the best exchange rates, but make sure those great rates don’t come with high transfer fees attached.

Transfer fee

Compare the fee that each provider charges per transfer. Fees could be as high as $60 or $70, depending on the amount you send and where you are sending it, or as low as a few dollars. Some providers will also waive their fees on large transfers.

Transfer options

Can you lodge your transfer online, over the phone and/or by visiting a branch? Is there a smartphone or tablet transfer app?

Transfer methods

If you need to make regular repayments to your creditors, check to see whether the transfer provider allows you to set up a recurring payment schedule. Other transfer options, such as forward contracts and limit orders, can also be used to help you save time and money.

Processing time

Compare how long it will take each provider to complete your transfer. Some companies, such as Western Union, offer cash transfers that are completed within minutes, while other transfer options can take as long as 5 days.

Available currencies

Hopefully you will only have overseas debt to be repaid in one country, but if you owe money in multiple countries then you will need to make sure that your transfer provider offers support for all the relevant currencies.

Customer support

If you ever have a problem with a transfer or need help, will you be able to access the assistance you need over the phone, via email or through a live chat service?

Top tips for paying off an overseas debt

Keep an overseas bank account open

Consider keeping your existing bank account open when you move to Australia. This will give you a destination for your international money transfer and then allow you to manage debt payments via Internet banking.

Try to pay off debt before you leave

No matter which money transfer provider you choose, paying off overseas debts will still lead to additional expenses due to exchange rates and transfer fees, not to mention the added pressure of interest charges. With this in mind, take whatever steps you can to pay the debt off before you leave your home country – for example, could you use the proceeds from the sale of your house, furniture or car?

Debt collection agencies aren’t limited to one country

Moving overseas won’t help you escape your debt. Many debt collection agencies operate internationally, while other agencies can “outsource” your debt to other collectors.