They’re always running around in the back of my mind, reminding me that this month’s payment is swiftly approaching, regardless of what my bank account looks like. It's stressful, to say the least, and can easily develop into a state of constant anxiety. And right now, I can't afford my student loans, so that anxiety has escalated to the next level.
Jessica Buck is typical of many of the people we work with. A large student loan debt ruining her life and relationships. Student loan debt is constantly on her mind:
Ms Buck's problem is US student loan debt, but the effect on many NZ student loan debtors is the same. Having a student loan debt can easily cause anxiety, depression, and loss of quality of life. The sooner you deal with it the better.
The IRD states that it could take more serious actions against overseas debtors than it currently is, including applying for garnishee orders on overseas income, initiating bankruptcy procedures in an overseas court or continuing with their arrest warrant processes if the borrower crosses the New Zealand border. If you have an overseas debt that is out of control, these IRD indications should cause you to immediately deal with your debt as the possibility of being bankrupt overseas or having a garnishee order against overseas income is scary news for many people.
Currently when overseas debtors become bankrupt in NZ, to get rid of the student loan debt, the IRD does not take proceedings to also make them bankrupt overseas, meaning that their overseas credit rating remains largely unaffected (in most cases). The indication that the IRD is considering overseas bankruptcies is a game changer and would have a huge impact on an overseas resident debtor. The message is that if your debt is not under control, that the sooner you deal with it the safer you are likely to be from an escalation of IRD enforcement action.