Korean Job Discussion Forums

[.res.ipsa.loquitor]

My partner and I have about $3700 worth of credit card debt, which we pay off by sending money home each month. There is, of course, a fee associated with this, and we are at the mercy of whatever exchange rate is in effect at the time.

We are considering applying for a revolving credit card from Citibank - or some other bank that offers them (NB: most Korean credit cards are non-revolving, meaning that they have to be paid in full every month). We would then use the Korean card to pay off the Canadian debt, so we can service the debt monthly, by paying KRW. No remittance charges, super-fast and easy payments, and no fears of the won tanking and having to pay more for our debt.

The issue is NOT getting the card. My partner and I have already been assured that it will not be a problem. The issue is whether (a) they will give us a sufficient credit limit to completely transfer our Canadian debt, or (b) whether the interest rates will be higher here.

If anyone has tried this, or has any comments either way, please respond to this post.

Thanks!

[brento1138]

I am pretty sure the answer is "no" on this one. I don't have much to back it up, but after a few years in Korea, never heard of this happening.

[lifeinkorea]

I don't know about savings, but is it really a good idea to move a debt into won with the exchange rate the way it is?

In the short term, you may find it favorable. In the long term, it it's probably better to keep it in dollars. If the won gets stronger, then you will have more buying power in the future.

[jlb]

Not to be stating the obvious...BUT...if the two of you scrimped and saved for 2 months, couldn't you just pay it off and be done with it?

[Senior]

[.res.ipsa.loquitor]

Well, we would also be paying on student loans, and it would be much easier to just pay with a Korean credit card instantly, rather than pay for transfers and wait a week for them to clear.

I'm just sick of dealing with two currencies and losing money every time I have to send it home. Call it a reality of teaching overseas, but I feel like it would make my life a lot easier if I could just deal in KRW.

As for the debt, we also have student loans to pay, so it's not possible to just eliminate it all in a month or two.

So maybe we'll just apply for the Korean card and slowly pay off and close the credit card accounts at home.

[Senior]

Just pay the one with higher interest first. I don't know how it works in Canada, but where I'm from you can let your student loan slide for ages before they will do anything. Then when you finish paying off the CC, you can roll that cash into the student loan.

[Mr. Pink]

[mtmelton]

If you have a Korean credit card why are you paying 30 dollars in transfer fees? You should try to get an expat credit card, It should be lower your transfer fee costs and give you a better exchange rate when you do want to send it home.

[.res.ipsa.loquitor]

Thank you for all the good suggestions, and yes MTMelon, the preferential exchange rate is one reason why I plan to get the expat visa (for when I travel or leave Korea permanently).


but from what I've heard about Korean banks, they don't "talk" to each other about their customers credit, etc. So I could just apply to as many banks as nescessary to get a total of $4000 or so.

Then I can make pay off the Canadian credit cards through the Korean ones, and then pay off the Korean ones with my salary, right? It's none of the bank's business what I spend money on, correct?

[egrog1717]

[Mr. Pink]

[toonchoon]

on an E-2 visa, a reputable employer, a steady income and all that good stuff, i had to put down 2 mil to get a credit card with a credit line of 1.8 mil. you get "interest" on the 2 mil you put down, but it's negligible. i just closed the card and took that 2 mil and put it back into my savings account.

i get much more use out of my Samsung Check card, such as discounts here and there, as well as not having to pay with cash at Costco (I used to love whipping out my card, while other foreigners behind me in line stared at me, then pulled out wads of 10,000 bills, but this is no longer the case with the 50,000 bills).

try to get an unsecured card, and let me know if you do, and where.

you could always get american express travelers checks, send them to your dad, have him deposit them, and pay $3 to mail a letter rather than $30 to wire money. then again, there's risk associated with that.

[egrog1717]

OP - Get yourself set up with KB*'s ATM overseas remittance... About half an hour worth of paperwork, but it only costs 5k per transaction (plus whatever your bank at home charges)...

Been hooked up to that since Sept /08 and have send home 600-800k a month ever since...