The faltering pound has forced a high number of British expatriates to seek advice and assistance from debt counselling agencies, say the Consumer Credit Counselling Service (CCCS).
The CCCS’s helpline has seen a large increase in the volume of calls since the start of 2010, with a third of calls relating to debt management. These calls were primarily made by Brit expats who are struggling with outgoings.
The problem lies with expats who are being paid in pounds, and as the pound suffers so does their income. Pensioners are also experiencing troubles, especially those who have a sterling pension, a problem which gives more weight in the favour of a QROPS or other type of overseas pension plans that allow funds to be paid in numerous currencies.
According to the CCCS over 500 expats have been in contact since the beginning of 2010, which is an increase of 33 percent on the same time period in 2009.
A helpline manager at the CCCS, Laura Carver, said: “The decreasing value of the pound is the main reason that those living abroad are struggling to repay their debts. We have had people whose income had allowed them to live comfortably abroad, and although that income hasn't changed, they have been left struggling to make ends meet”.
Please note, you can only utilise a QROPS if you are between the ages of 18 to 75; and are a non-resident British citizen, or intend to be within the next 12 months, or if you are not a UK citizen and are planning to leave the UK within one year.