Job Discussion Forums

[Sevarem]

I know this topic has been done to death and I *have* done some searches on the question at hand, but I'm still a bit unclear. Up to date information is always nice as well.

I'm probably going to accept one of the job offers I've received, which means I'll be in China by the end of August....

I have student loans to pay however. This is not an option. I can't defer them, but I do have until mid-November to begin paying them. In the meantime, I'm going to finish paying off my credit card debt. I plan to use half of my monthly salary for debt payment purposes.

Is this possible to do from within China? How does one go about sending money to their creditors to pay off loans? If doing so is not an option, then I won't be able to take any jobs in China, so please be as frank as possible.

I appreicate all advice.

[Teacher Lindsay]

I would not have come to China had I been in debt. I would have gone to the higher paying locales of Japan or South Korea.

It is not difficult to save money in China, in the range of US$240.00 to US$480.00 per month, but in Japan or South Korea you could double those figures.

Of course, your "cultural experience" preference may be for China.

Cheers

[NateM]

Could you transfer funds using something like paypal? I did a quick survey of their site and they didn't seem to have an option for RMB, but it also seemed to indicate that it wasn't really necessary to specify a currency.

The only bills I'm worried about are my student loans, which will probably run around 140 a month or so.

[Atlas]

Western Union charges $15 for sending $500 and less, $20 for more. You can find branches all over town, but you have to keep your eyes peeled for that little black and yellow sign on the bank. While back home W.U. offers various forms for various kinds of payment, here (in Shanghai) you only get the standard form.

Banks that I've found don't ususally convert RMB to foreign currency. When they post that "Currency Exchange" plaque by their entrance, it usually just means they will give you RMB. But there are many ways to convert your dough. There are people who can help you convert it, because they get foreign currency from tourists and then sell it back to us local types; the going rate of exchange is 8.3 which is good.

If you have a credit card/debit card, one convenient thing is you can use the ATMs here, they do have English interfaces, and while you have foreign currency in those accounts, RMB will come out of the machine--but bear in mind the service charges, and also, sometimes the connection just doesn't work. Once, an ATM failed to dispense 1000 yuan to me, but the bank went ahead and charged my overseas account. They blamed the card company, the card company blamed the bank, and someone made off with MY money. This was a one-time occurence, everything seems to go pretty smoothly since then.

ICBC cards from local branches work pretty well, there is no service charge for ATM use, and you can take your cash earnings and put them directly into special ATM deposit machines that check your bills for authenticity, and post the deposit to your account then and there! But if you want to do regular banking with a local bank, please bear in mind this advice: nothing goes quickly, queues are nonexistant, everything takes forever, confusion abounds, don't expect to speak English to a teller, and don't put too much faith in the computer system. Have you ever seen someone throw open the bank entrance and just start shouting? I'd be afraid of getting shot! But it's the kind of atmosphere you find here.

Debts:

You can pay them here. Maybe other countries offer you more salary but the living costs go up too. The question isn't if you can pay your debts, it's if you can save money working 12 hours a week and drinking beer every night, and no, you can't. You may need to work, like me, 22 hours at one job, and 3 evening classes a week at another (10 hours), which by teaching standards is a little heavy, but still easier than any job I've had in the past. My only problem is leaving home at 7:00 am and returning at 10:00 pm (though I have plenty of free time during the day). However my weekends are utterly free, and that's my cardinal rule. (A great rule--it ensures that I keep control of my schedule, and am not pushed around or taken for granted by management; but instead I am a welcome sight when I do come!).

To anyone worried about money: I can't speak about the rest of China, but in Shanghai, you will have a measure of comfort and financial peace of mind, even with debt back home. I don't know how much you can save but you can survive well. Things are cheap here (when I shop at Xianyang market (what we call in America a flea martket-with lots of designer knockoffs. Don't believe for a second anything is real!) I divide the quoted price by 8, and I am still overpaying! No way you are limited to 4000 RMB a month total income!

BTW, Chinese restaurants can be pretty darn great! For what you pay at McDonald's you can have a real dining experience!

[struelle]

[rj]

I can't offer any advice on how to pay your student loans from China, but if you are from the US then I do suggest you talk to whoever has your loans. I'm not planning to be in China till next year, but I called Sallie Mae (they have my loans) and I was told to get on the income sensitive repayment plan. Since payment will be based on my income, if I choose to pay more that's fine, but I won't find myself strapped for cash if it turns out the payments are more than I can afford (for a particular month or regularly). Depending on who has your loans and what kind you have, this can alter the life of your loan (and how much interest you'll be paying) but if you discover you don't need it, you can always go back to a full payment plan later.

[Sevarem]

I really appreciate everyone's advice. Paying debts sounds like it might be a slight hassle, but nothing that I can't handle.

[kev7161]

I have student loans with Sallie Mae and right now they are all in deferrment due to the amount of my income (roughly equivalent to $500 USD). It is called a "hardship deferrment". Basically, all they wanted was a letter from my school stating how much I earned in the USD dollar amount. They didn't ask and I didn't tell them that this money is pretty much free and clear as all my bills in China are paid for. But if they do ask, just tell them that 4000rmb (or whatever) may not be much in the states, but it goes a long way here and that most Chinese live off a lot less here. You can "insinuate" that you will have certain cost of living expenses here, but again, they didn't ask. You can go to salliemae.com for more info. Or, your student loan handlers probably have a similar program.

[Badtomatoe]

Just keep in mind that if you defer your loans, interest still accumulates on the principle.
I deferred my loans for a couple years, and the interest just kept adding up.
Something to think about, anyway. It would be better to pay something, than nothing at all, as long as you're getting the principle balance down.

[rj]

[Irish Blood English Heart]

Anyone from Britain know what to do with the Student Loan Company? I have about �6k of loans that im due to start paying back from September. If I let them know i'm in China and on Y48000 a year (about �3500 a year) which is about 1/3rd the pay back level will I be ok? Im paying off my overdraft before I go but obviously with Student loans its not so simple.

[Sevarem]

Well, as I said, I can't defer my loans. Actually, perhaps I could defer my loans, but the point is, I feel it's more important to begin paying them off, even if I'm only paying in very small amounts for a while. It's better than letting the interesting pile up.

Thanks for the advice on consolidation. I've been looking into it.

I appreciate all advice so far.

[Buttercup]

About your student loans, can't you just send them post-dated cheques from you bank account at home? Then all you have to do is regularly send money to that bank account (major hassle at the bank, or other ways suggested here).

For credit card payments, it's very easy if you have online banking. I can access my bank account online from anywhere in the world, and make my payments directly from there. I never see the money, except to refill that account!

[rj]

I don't know about other companies, but Sallie Mae will do automatic debits from your checking account if you prefer it that way. They will also give you a .25% reduction in your interest rates as long as you use the debit option and your payments are made on time.

[Sevarem]