“There is a way to make this scenario work, either become an expat in a country where the cost of living is low, continue to work, and plow your earnings into paying back your debt. If you have a business or even a job that you can do anywhere in the world, online businesses are particularly suitable, you can continue to work in a country with a low cost of living, where even a modest income can go a long way.”
If you’re up to your eyeballs in debt and can’t see a way out, the idea of moving to another country and ditching your debts may be very appealing. Kathleen Peddicord, publisher of “Live and Invest Overseas”, says she’s met many people in that situation over the years.
But while she says relocating abroad can be a successful strategy for getting out of debt (more about how to do that in a moment), she also warns that, “It’s probably not the cure-all that people think it might be.” Financial problems don’t simply disappear. “It’s not an Etch A Sketch,” she says.
Here are three pitfalls you may encounter when trying to dodge your debts in another country.
1. You Gotta Have Cash
Relocating to a foreign country isn’t as simple as buying a plane ticket and packing your suitcase. In addition to the expenses you’ll incur, such as housing, you’ll also want to secure residency in that country if you hope to remain there for a long period of time.
Big picture, there are two main ways to establish residency in another country, and they both require income, cash or both, explains Peddicord.