How to pay off an overseas debt

Here’s everything you need to know to pay off an overseas debt after moving to Australia and get your personal finances back in the black.

Updated Sep 5, 2020

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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.

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Min. Transfer Amount	Transfer Speed	Online Transfer Fee	Rate	Amount Received	Description	CTA	Details
GBP 0	1 - 2 days	AUD 1.99	0.765	USD 7,647	Azimo sends money directly to a bank account or over 280,000 cash pick-up points. It also has fast transfers to 50+ countries.	Go to site	Compare	Show details	Details Minimum transfer amount GBP 0.00 Transfer methods Online, Bank Account to Bank Account Transfer options One off payments Customer service Chat, Email Available currencies AED, ALL, AMD, AOA, ARS, AUD, AWG, AZN, BAM, BBD, BDT, BGN, BHD, BIF, BMD, BND, BOB, BRL, BSD, BTN, BWP, BYR, BZD, CAD, CDF, CHF, CLP, CNY, COP, CVE, CZK, DJF, DKK, DOP, DZD, EGP, ERN, ETB, EUR, FJD, GBP, GEL, GHS, GIP, GMD, GNF, GTQ, GYD, HKD, HNL, HUF, IDR, ILS, INR, ISK, JMD, JOD, JPY, KES, KGS, KHR, KMF, KRW, KWD, KZT, LAK, LBP, LKR, MAD, MDL, MGA, MKD, MNT, MOP, MRO, MUR, MVR, MWK, MXN, MYR, MZN, NGN, NIO, NOK, NPR, NZD, OMR, PEN, PGK, PHP, PKR, PLN, PYG, QAR, RON, RSD, RUB, RWF, SAR, SBD, SCR, SEK, SGD, SLL, SRD, STD, SZL, THB, TJS, TMT, TND, TOP, TRY, TTD, TWD, TZS, UAH, UGX, USD, UYU, UZS, VND, VUV, WST, XAF, XCD, XOF, XPF, ZAR, ZMW Go to site Read the full review
AUD 2,000	1 day	AUD 0.00	0.767	USD 7,672	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.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 2,000.00 Transfer methods Online, Phone, Bank Account to Bank Account Transfer options Regular payments, One off payments, Market orders, Forward contracts Customer service Phone, Email Available currencies AED, AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HRK, HUF, ILS, JPY, NOK, NZD, PLN, SEK, SGD, THB, TRY, USD, ZAR Go to site Read the full review
AUD 2,000	1 day	AUD 0.00	0.767	USD 7,672	SendFX guarantees to match any competitor’s exchange rate. T&Cs apply. Fee-free transfers in 30+ currencies to over 200 countries.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 2,000.00 Transfer methods Online, Bank Account to Bank Account Transfer options Regular payments, One off payments, Forward contracts Customer service Phone, Email Available currencies AED, AUD, BGN, BHD, CAD, CHF, CNY, CZK, DKK, EUR, GBP, HKD, HUF, IDR, ILS, INR, JPY, KES, KWD, MXN, MYR, NOK, NZD, OMR, PHP, PLN, QAR, RON, SAR, SEK, SGD, THB, TRY, USD, ZAR Go to site Read the full review
AUD 2,000	1 day	AUD 0.00	0.767	USD 7,672	Better exchange rates for Finder customers. WorldFirst sends 60+ currencies at competitive rates with no fees. If you find a better eligible quote, WorldFirst will beat it.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 2,000.00 Transfer methods Online, Phone, Bank Account to Bank Account Transfer options Regular payments, One off payments, Market orders, Forward contracts Customer service Phone, Chat, Email Available currencies AED, AUD, BBD, BGN, BHD, BWP, CAD, CHF, CLP, CNY, COP, CZK, DKK, EGP, EUR, FJD, GBP, HKD, HRK, HUF, IDR, ILS, INR, JMD, JOD, JPY, KES, KRW, KWD, LKR, MAD, MUR, MXN, MYR, NOK, NPR, NZD, OMR, PEN, PHP, PKR, PLN, QAR, RON, RUB, SAR, SEK, SGD, THB, TND, TRY, TTD, TZS, UGX, USD, VND, XCD, ZAR Go to site Read the full review
AUD 250	1 - 2 days	AUD 0.00	0.767	USD 7,672	$0 transfer fees for Finder customers. OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 250.00 Transfer methods Online, Phone, Bank Account to Bank Account Transfer options Regular payments, One off payments, Market orders, Forward contracts Customer service Phone, Email Available currencies AED, AUD, AZN, BGN, BND, CAD, CHF, CNY, CZK, DKK, EGP, EUR, FJD, GBP, HKD, HUF, IDR, ILS, INR, JPY, KRW, KWD, LKR, MAD, MGA, MXN, MYR, NOK, NZD, OMR, PEN, PGK, PHP, PKR, PLN, RUB, SAR, SBD, SCR, SEK, SGD, THB, TOP, TRY, TWD, TZS, USD, VEF, VND, VUV, WST, XOF, XPF, ZAR Go to site Read the full review
AUD 1	1 day	N/A	N/A	N/A	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.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 1.00 Transfer methods Online, Bank Account to Bank Account, Cash Transfer Transfer options One off payments Customer service Phone, Chat, Email Available currencies AUD, EUR, GBP Go to site Read the full review
AUD 1	1 day	AUD 52.00	0.766	USD 7,624	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.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 1.00 Transfer methods Online, Bank Account to Bank Account, Cash Transfer Transfer options One off payments Customer service Phone, Chat, Email Available currencies AUD, CAD, EUR, GBP, HKD, IDR, INR, JPY, KRW, LKR, MYR, NPR, NZD, PHP, SGD, THB, USD, VND, ZAR Go to site Read the full review
AUD 10	Within an hour	AUD 2.99	0.762	USD 7,616	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.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 10.00 Transfer methods Online, Bank Account to Bank Account, Cash Transfer Transfer options N/A Customer service Phone, Chat, Email Available currencies ARS, AUD, BDT, BGN, BOB, BRL, CLP, CNY, COP, CRC, CZK, DOP, EGP, ETB, GHS, GTQ, GYD, HNL, HRK, HTG, HUF, IDR, INR, JMD, KES, KMF, KRW, LKR, MAD, MXN, MYR, NIO, NPR, PEN, PHP, PKR, PLN, PYG, RON, RWF, THB, TND, TRY, TZS, UGX, USD, UYU, VND, XAF, XOF, ZAR Go to site Read the full review
AUD 1	Same day	AUD 0.00	0.766	USD 7,664	XE has fast transfers with no fees and a range of foreign currency tools.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 1.00 Transfer methods Online, Bank Account to Bank Account Transfer options One off payments, Market orders Customer service Phone, Email Available currencies AED, AMD, AUD, BAM, BBD, BDT, BGN, BHD, BND, BRL, BSD, BWP, CAD, CHF, CLP, CNY, COP, CRC, CVE, CZK, DKK, DOP, EUR, FJD, GBP, GEL, GTQ, HKD, HNL, HRK, HUF, ILS, JMD, JOD, JPY, KES, KRW, KWD, KZT, LKR, LSL, MAD, MKD, MUR, MWK, MXN, MYR, NAD, NOK, NZD, OMR, PEN, PGK, PHP, PKR, PLN, PYG, QAR, RON, RSD, RUB, RWF, SAR, SBD, SCR, SEK, SGD, SZL, THB, TND, TOP, TRY, TTD, TWD, TZS, UGX, USD, VUV, WST, XCD, XPF, ZAR Go to site Read the full review
AUD 200	1 - 2 days	AUD 50.00	0.769	USD 7,656	Exclusive: Use code FINDER10 to receive US$10 off your first transaction. InstaReM offers simple transfers with a flat 0.5% transfer fee for most transfers. Zero-margin rates on some currencies.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 200.00 Transfer methods Online, Phone, Bank Account to Bank Account Transfer options One off payments Customer service Phone, Chat, Email Available currencies AUD, BDT, CAD, CNY, EUR, GBP, HKD, IDR, INR, KRW, LKR, MYR, NPR, PHP, PKR, SGD, THB, USD, VND Go to site Read the full review
AUD 5	1 - 2 days	EUR 3.00	0.763	USD 7,624	Special offer: Zero fees on your first 10 transfers. CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 5.00 Transfer methods Online Transfer options One off payments Customer service Phone, Email Available currencies AED, AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, IDR, ILS, INR, NOK, NZD, PHP, PLN, SEK, SGD, THB, USD, ZAR Go to site Read the full review
AUD 1	Same day	AUD 3.99	0.761	USD 7,607	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.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 1.00 Transfer methods Online, Bank Account to Bank Account, Cash Transfer Transfer options One off payments Customer service Phone, Email Available currencies AED, ALL, AMD, ANG, AOA, ARS, AUD, BAM, BBD, BDT, BGN, BHD, BIF, BOB, BRL, BWP, CAD, CDF, CHF, CLP, CNY, COP, CRC, CVE, CZK, DKK, DOP, EGP, ETB, EUR, FJD, GBP, GEL, GHS, GMD, GNF, GTQ, HKD, HNL, HRK, HTG, HUF, IDR, ILS, INR, ISK, JMD, JOD, KES, KGS, KHR, KMF, KRW, KWD, KYD, KZT, LAK, LBP, LKR, LRD, LSL, MAD, MDL, MGA, MRO, MUR, MVR, MWK, MXN, MYR, MZN, NAD, NGN, NIO, NOK, NPR, NZD, OMR, PAB, PEN, PGK, PHP, PKR, PLN, PYG, QAR, RON, RUB, RWF, SCR, SEK, SGD, SLL, SOS, SRD, THB, TJS, TND, TOP, TRY, TZS, UAH, UGX, USD, UYU, VND, WST, XAF, XCD, XOF, ZAR, ZMW, BYN Go to site Read the full review
AUD 1	1 - 2 days	AUD 45.00	0.77	USD 7,668	TransferWise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.	Go to site	Compare	Show details	Details Minimum transfer amount AUD 1.00 Transfer methods Online, Bank Account to Bank Account Transfer options Regular payments, One off payments Customer service Phone, Chat, Email Available currencies AED, ARS, AUD, BDT, BGN, BRL, BWP, CAD, CHF, CLP, CNY, COP, CRC, CZK, DKK, EGP, EUR, GBP, GEL, GHS, HKD, HRK, HUF, IDR, ILS, INR, JPY, KES, KRW, LKR, MAD, MXN, MYR, NGN, NOK, NPR, NZD, PEN, PHP, PKR, PLN, RON, RUB, SEK, SGD, THB, TRY, TZS, UAH, UGX, USD, UYU, VND, XOF, ZAR, ZMW Go to site Read the full review

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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:

Credit card debt
Student loans and education fees
Car loans

Personal loans
Home loans
Tax debt

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. Find out what those rights are in our guide on how to deal with debt collectors.

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 three 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 TransferWise, 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.

Case study: Debbie’s debt

Debbie moved to Australia from the UK in mid-2016, leaving behind a personal loan debt of £1,500. After a couple of months working in Australia and getting her finances in order, Debbie has saved enough money saved to pay off the amount she owes. She initially plans to send the funds straight from her account with a major Australian bank back to her old bank account, but she decides to compare her options and see if a specialist money transfer company can offer a better deal.

The results of her comparison are shown in the table below. As you can see, Debbie can save $138.30 if she sends the transfer via an online money transfer company rather than from her bank. This shows just how important it is to shop around for the best exchange rate and lowest transfer fees.

	Bank	Online money transfer provider
Exchange rate	1 AUD = 0.5599 GBP	1 AUD = 0.5935 GBP
AUD needed to convert to £1,500	$2,680	$2,546
Transfer fee	$22	$17.70
Total cost of transfer	$2,702	$2,563.70

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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 five 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.

Thank you for your feedback!

Tim Falk

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors.

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SendFX International Money Transfers

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How to pay off an overseas debt

Here’s everything you need to know to pay off an overseas debt after moving to Australia and get your personal finances back in the black.

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

Compare up to 4 providers

Can’t find what you’re looking for? Have a TorFX currency expert contact you for free

What happens when I submit this form?

Why would I want to use this form?

Common overseas debts

Can I leave my debts behind?

Arrest

Your credit history will suffer

You may face legal action

You could lose some of your salary

Your creditors could catch up with you in Australia

How to deal with overseas debt collectors

How to pay off an overseas debt

Through your bank

Through a cash transfer provider

Through an online transfer provider

Case study: Debbie’s debt

The latest articles in foreign exchange

How to choose a money transfer provider

Exchange rate

Transfer fee

Transfer options

Transfer methods

Processing time

Available currencies

Customer support

Top tips for paying off an overseas debt

Keep an overseas bank account open

Try to pay off debt before you leave

Debt collection agencies aren’t limited to one country

More guides on Finder

International Money Transfer Offers

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