Expat leaving debts in Chile

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
loulou23
Rank: Chile Forum Tourist
Posts: 9
Joined: Mon Feb 04, 2019 8:28 pm

Expat leaving debts in Chile

Post by loulou23 » Mon Feb 04, 2019 9:04 pm

Hello, I'm wondering if you can help me. I am in the situation of having to leave my job in Chile and return to Scotland (for family reasons). I have a credit card here, with a debt of around 5,000,000CLP. I am not in a position to pay this off now. Do you know what will happen if I leave without paying this? I will be in a position to pay it back when returning to Scotland as will start a new job soon enough. But not sure what the process is in this case :o Thank you for any advice.

I'll add to this. of course both the bank and I have been irresponsible with lending,I was only here on a temporary contract. I will be paying this debt back without a doubt, but it will take me longer than being in Chile. I am just wondering if anyone knows how serious the consequences would be until I can pay it off in full. Thank you! Not looking for judgements on my moral character. When its obvious I'm on here asking what I can do, rather just upping and leaving. Like I know MANY expats have.

Gloria
Rank: Chile Forum Citizen
Posts: 4494
Joined: Sat Jan 20, 2007 12:30 pm
Location: Región de los Ríos

Re: Expat leaving debts in Chile

Post by Gloria » Mon Feb 04, 2019 9:36 pm

You are going to jail my boy!.......and if you wear a kilt, your mates will gonna love you!

going-to-prison.jpg
I'm from the generation of common sense, wisdom and unfiltered answers. I sayeth as I seeth.

User avatar
eeuunikkeiexpat
Rank: Chile Forum Citizen
Posts: 7418
Joined: Fri Sep 01, 2006 1:38 am
Location: Megalith of unknown origin near my digs, south V Region coast

Re: Expat leaving debts in Chile

Post by eeuunikkeiexpat » Mon Feb 04, 2019 10:13 pm

You wouldn't be the wedding photographer guy would you?
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

loulou23
Rank: Chile Forum Tourist
Posts: 9
Joined: Mon Feb 04, 2019 8:28 pm

Re: Expat leaving debts in Chile

Post by loulou23 » Mon Feb 04, 2019 11:00 pm

Hi, no, I'm not a male photographer. I'm a female recruitment consultant. Justing look for some serious responses, if anyone knows anything. I know leaving debts is not a criminal offence but obviously have a moral obligation to pay and want to one day return to Chile. Thanks for anyone who has any advice.

Gloria
Rank: Chile Forum Citizen
Posts: 4494
Joined: Sat Jan 20, 2007 12:30 pm
Location: Región de los Ríos

Re: Expat leaving debts in Chile

Post by Gloria » Mon Feb 04, 2019 11:39 pm

The sad truth is.....you may leave the country without any consequences for your debts. Not fair though. Vienes al país, disfrutastes lo que comprastes, dejastes la cagá y ahora apretas cueva!
I'm from the generation of common sense, wisdom and unfiltered answers. I sayeth as I seeth.

User avatar
admin
Site Admin
Posts: 17468
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Expat leaving debts in Chile

Post by admin » Tue Feb 05, 2019 7:56 am

oh, come on. i have seen gringos bounce a personal check for a million dollars and skip the country. granted the idiot that accepted the personal check, ultimately got his factory back.

I don't think the chilean economy, or even the bank, is going to collapse over your 5 million pesos. if a commercial lender did not hedge out or manage that risk correctly from the start, they realy do deserve to be put down.

it is a buisness trasaction. an unsecured consumer loan. a contract. break a deal, face the wheel, sort of thing.

no one at the bank is loosing sleep over it. there are no morals involved in it. it is not the same as say 'should i tell the nazi storm troopers at my front door i have a bunch if jews hiding in my basement'.

blows me away that the lending industry has maneged to convince people that it rises to that same sort of moral dilemma.

really? we are going to take ethics lessons from the banking industry?

thousands of companies just defaulted on billion of dollars in loans while i wrote this, all over the world, and no one even blinks when they do it; but, a private citizen defaults on a little loan, and it is a hysterical 'oh my god they are horrible people that are trying to kill all of us'.

the bank computers modeled the probability that say 3% of the people or whatever were going to default this year, before you even took the loan, and calculated how much money they need to charge everyone to cover those losses and make a profit. that is how the game is played. it is a game called "capitialism". a little like monopoly, just a less fun and the rules are a lot less fair.

all the "moral hazard" is reflected in your interest rate, and man do the interest rates in chile reflect it.

as a practical matter, your credit will suck for about 7 years until it falls off your credit report or until you pay it back. if you ever plan to come back to chile, then you might want to worry about how it is going to effect your credit rating and so on. definitly will get in the way of getting any banking services ever again. so probably a good idea to clean it up when you get the chance.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
41southchile
Rank: Chile Forum Citizen
Posts: 561
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Expat leaving debts in Chile

Post by 41southchile » Tue Feb 05, 2019 9:29 am

admin wrote:
Tue Feb 05, 2019 7:56 am
oh, come on. i have seen gringos bounce a personal check for a million dollars and skip the country. granted the idiot that accepted the personal check, ultimately got his factory back.

I don't think the chilean economy, or even the bank, is going to collapse over your 5 million pesos. if a commercial lender did not hedge out or manage that risk correctly from the start, they realy do deserve to be put down.

it is a buisness trasaction. an unsecured consumer loan. a contract. break a deal, face the wheel, sort of thing.

no one at the bank is loosing sleep over it. there are no morals involved in it. it is not the same as say 'should i tell the nazi storm troopers at my front door i have a bunch if jews hiding in my basement'.

blows me away that the lending industry has maneged to convince people that it rises to that same sort of moral dilemma.

really? we are going to take ethics lessons from the banking industry?

thousands of companies just defaulted on billion of dollars in loans while i wrote this, all over the world, and no one even blinks when they do it; but, a private citizen defaults on a little loan, and it is a hysterical 'oh my god they are horrible people that are trying to kill all of us'.

the bank computers modeled the probability that say 3% of the people or whatever were going to default this year, before you even took the loan, and calculated how much money they need to charge everyone to cover those losses and make a profit. that is how the game is played. it is a game called "capitialism". a little like monopoly, just a less fun and the rules are a lot less fair.

all the "moral hazard" is reflected in your interest rate, and man do the interest rates in chile reflect it.

as a practical matter, your credit will suck for about 7 years until it falls off your credit report or until you pay it back. if you ever plan to come back to chile, then you might want to worry about how it is going to effect your credit rating and so on. definitly will get in the way of getting any banking services ever again. so probably a good idea to clean it up when you get the chance.
Exactly, good post admin, banks are legally allowed to rob you, and a necessary evil, my banks have made several times over your debt in the last few years from me from interest, insurance , fees and commissions etc, swings and roundabouts for the bank. They win some they lose some, I wouldn't lose any sleep over it, its factored in.
Comuna Loncotoro Lakes Region Chile

Britkid
Rank: Chile Forum Citizen
Posts: 1670
Joined: Wed Dec 05, 2012 6:59 pm
Location: Talagante area, Chile
Contact:

Re: Expat leaving debts in Chile

Post by Britkid » Tue Feb 05, 2019 9:55 am

no morals involved ???
just because it's factored in it's OK??

who do you think really pays for the lost debt. all the other banking customers.

people who rip off the banks are ripping off every other customer. probably you all get 1% interest on your account instead of 1.2%. that 0.2% is to pay for the money they lost. the thieves really took the money for you.

same with tax evasion. why do you think your tax rate is say 17%. you would be paying 12% for the same services if it wasn't for all the tax evaders. everyone from billionaire hedge fund managers to the guy at your local fruit stall. they are all screwing YOU.

what about the people on the metro that jump over without paying. because of them the fair is 650 pesos (or whatever it is) instead of 600. every time you get on the metro 50 pesos of your fare is to pay for them.
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

User avatar
41southchile
Rank: Chile Forum Citizen
Posts: 561
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Expat leaving debts in Chile

Post by 41southchile » Tue Feb 05, 2019 10:21 am

Britkid wrote:
Tue Feb 05, 2019 9:55 am
no morals involved ???
just because it's factored in it's OK??

who do you think really pays for the lost debt. all the other banking customers.

people who rip off the banks are ripping off every other customer. probably you all get 1% interest on your account instead of 1.2%. that 0.2% is to pay for the money they lost. the thieves really took the money for you.

same with tax evasion. why do you think your tax rate is say 17%. you would be paying 12% for the same services if it wasn't for all the tax evaders. everyone from billionaire hedge fund managers to the guy at your local fruit stall. they are all screwing YOU.

what about the people on the metro that jump over without paying. because of them the fair is 650 pesos (or whatever it is) instead of 600. every time you get on the metro 50 pesos of your fare is to pay for them.
Steady on, I was talking about this person. No one says she is ripping off the bank, she said she was going to pay, but it will be late, but still going to PAY, late payments are factored in. The point is shit happens in people's lives outside their control sometimes and that's factored in, normallyfactored in also are high penalties for late payers. As for Admins comments it's right on the money, so to speak, banks are immoral as they come , the list is LONG in the last few decades of their misdeeds.
Comuna Loncotoro Lakes Region Chile

User avatar
admin
Site Admin
Posts: 17468
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Expat leaving debts in Chile

Post by admin » Tue Feb 05, 2019 11:01 am

Britkid wrote:
Tue Feb 05, 2019 9:55 am
no morals involved ???
just because it's factored in it's OK??

who do you think really pays for the lost debt. all the other banking customers.

people who rip off the banks are ripping off every other customer. probably you all get 1% interest on your account instead of 1.2%. that 0.2% is to pay for the money they lost. the thieves really took the money for you.

same with tax evasion. why do you think your tax rate is say 17%. you would be paying 12% for the same services if it wasn't for all the tax evaders. everyone from billionaire hedge fund managers to the guy at your local fruit stall. they are all screwing YOU.

what about the people on the metro that jump over without paying. because of them the fair is 650 pesos (or whatever it is) instead of 600. every time you get on the metro 50 pesos of your fare is to pay for them.
ahhhhh, shareholders and bond holders of the banks. banks lend very little of other customers money anymore.

as a (very small) shareholder in a bank or two, i am perfectly o.k. with that risk. i also signed up for that risk of being the counter party to that loan, and i am getting paid a lot to shoulder that risk. i also don't just invest in any old bank. i invest in ones that are good at manging the risk / reward ratio, and some of them i would be just fine with them taking more risk as they are bit too conservative.

even the money of other customrs that is loaned, is in the same position as bond and shareholders anyway, just further up the capital structure. they get things like insurance and goverment guarantees that the shareholders do not in most cases.

allowing people to default, or go bankrupt, is increadibly healthy for the economy. the 2008 mess was created exactly because the u.s. congress started making it nearly impossible for people in financial trouble to get their feet under them. there was no pressure valve. but, hey banks can default without consequence. so who cares about the real people.

chile did not go down that road, and the economy reflects that.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

loulou23
Rank: Chile Forum Tourist
Posts: 9
Joined: Mon Feb 04, 2019 8:28 pm

Re: Expat leaving debts in Chile

Post by loulou23 » Tue Feb 05, 2019 12:35 pm

Thanks Admin and southchile. I am returning to the UK as I have a house there and the tenants are an absolute nightmare so I have to return to sell it. There will be enough profit for sure more over, to cover this debt totally. But it will take me a time to pay it off. I know of expats who have left 50k or more debt with no qualms, all while here on temporary contracts. It's a crazy amount of credit! I have no morals when its comes to banks. I agree with everything you say. The working force on the ground are f}}}}}D over daily by banks. The UK government banking system is horrifically corrupt (well unless your Richard Branson etc). It's more I want to pay it as I want to return in less than 12 months and also worried they could affect my bank in the UK. I was also worried they could stop me leaving Chile or something and I have my dog with me, that I rescued from Santiago (hopefully that will get me some good karma back :D

User avatar
fraggle092
Rank: Chile Forum Citizen
Posts: 1430
Joined: Fri Mar 28, 2008 6:35 pm
Location: In Chile

Re: Expat leaving debts in Chile

Post by fraggle092 » Tue Feb 05, 2019 1:14 pm

loulou23 wrote:
Tue Feb 05, 2019 12:35 pm
I know of expats who have left 50k or more debt with no qualms, all while here on temporary contracts. It's a crazy amount of credit!
So that's why its so difficult for an expat to get a bank account here.....
I blame the system, especially the evil banks who thrust money at hapless consumers.

Take it that the "50K" referred to is not CLP.
Après moi, le déluge

Post Reply