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Continuing Loan Payment after Move

What is the best way for me to continue paying my monthly loan payment after I move to another country?


The first problem we see is one of currency conversion, so it depends on whether you are using dollars in one account to pay dollars on the loan, or if you'll have fluctuating currency conversion rate to address. If you will have U.S. dollars in your foreign account, internet banking may be the simplest way to handle this. Just allow an adequate time for payments to be made. It may be internet banking, but that doesn't mean it is all done electronically or instantaneously.

If you will have a foreign currency in your account, you may find it easiest to transfer funds to an account in the U.S. each month. The foreign currency will be converted at the going rate and you can have that account debited by your bank to make the loan payments. With this method, put some additional funds in the account to both avoid bank charges from the depository bank, and this will provide a cushion should the conversion rate lower the transfer amount such that a full payment couldn't be made. The cushion could then be used and the loan payment would be made in a timely manner.

Published on BankingQuestions.com 10/17/07