When I first started traveling, the possibility of accidentally going bankrupt abroad was something that weighed heavily on my mind. Back then, I was afraid of being robbed or mugged as if it were a daily occurrence for travelers who choose to stay in hostels. I was concerned about credit card fraud. I worried that I would end up having such a good time that I would forget to keep track of my money and one day realize that I was out of it.
I worried about many things when I first went to travel.
Fortunately, traveling is not dangerous if you remember to pack your common sense in your backpack, and the chances of you ending up in bankruptcy are very, very slim. In six years of travel, I still haven’t heard it happen to anyone.
But that doesn’t mean it wo n’t happen.
However, if you end up losing all your cash while traveling, it doesn’t have to be a total disaster. The United States government offers financial assistance to bankrupt travelers, including repatriation loans, so you’ll always have that as a last resort.
Let’s take a look at how to prevent everything from becoming destitute while traveling, and where to turn for help if you go broke abroad.
How to avoid losing all your money in the first place
The first step is to avoid, and there are many steps you can take to make sure you don’t run out of money abroad. It only takes a few simple common sense practices to keep your money in your account and out of the hands of a mugger.
Follow general safety practices while on the road, such as dividing your cash into separate places, not wearing a money belt with everything important to you (often the first place a mugger will check), not wandering through unsafe neighborhoods , and keep your belongings on your person and with you during travel days. Keep some cash at the bottom of your shoe in case you are mugged and need to take a taxi to your accommodation in an emergency.
Don’t carry a lot of cash when you travel, and especially not hundreds or thousands of dollars in foreign exchange. In the vast majority of all countries, there will be ATMs and you will not be charged a fortune for withdrawals. Just take out everything you need and you won’t have to worry so much about getting robbed. If it happens, it will not be your life savings, it will be a maximum of $ 200.
It is worth checking your bank account regularly so that you have a good idea of how much money you have left in your account. The last thing you want is for you to run out of money, but you have no idea, because you were having too much fun. I make sure to check my bank balance using online banking at least once a week, and often when I withdraw money from an ATM.
I also recommend traveling with several different debit or credit cards that are linked to different bank accounts, all with money. Sometimes your bank will block your card while you are abroad and the easiest way to unblock it is to find some Wi-Fi and Skype with them from abroad, but that is not always possible. If it is an emergency situation, you will appreciate having additional cards that you can use as backup. This happened to me in the Maldives – my bank blocked my card and I had to use my backup to get cash.
Inside Wi-Fi, I would have been stuck at the airport and couldn’t get anywhere without my cash.
GoFundMe could be an option
GoFundMe is great in emergency situations, as you may be able to receive crowdfunding from friends and family who will want to help you. Use this if someone stole everything and you have nothing left. People will want to help you financially in this situation. Don’t do this if you just spent too much money and now can’t afford to get home – you got into that situation, so now is the time to get out.
United States Government Emergency Financial Assistance, Repatriation Loans
So what if the worst happens and you suddenly realize that you are abroad with no money in your name?
Overseas Citizens Services (OCS) is a division of the US Department of State Office of Consular Affairs and is responsible for the welfare of US citizens traveling abroad. American Citizens Services and Crisis Management (ACS) is one of OCS’s divisions. ACS is linked to US embassies and consulates around the world. From the United States Department of State:
“If they are homeless, Americans can turn to a US consular officer abroad for help. ACS will help by contacting the homeless person’s family, friends, or business associates to raise private funds. It will help convey these funds to the homeless Americans. “
“ACS also approves repatriation loans to pay for the direct return of indigent Americans to the United States. Each year more than $ 500,000 is loaned to the homeless.
With repatriation loans, just like when you call home for help with money, you will have to wait abroad for the money to arrive and eventually pay off the loan.
You can contact ACS at 1-888-407-4747 in the US (in case someone in your household needs to call to find out where to go for help) or 1-317-472-2328 from the Foreign. They will tell you where to go, what to do, and hopefully solve your financial problems temporarily.
More government help
Actually, the government has a host of helpful websites for travelers, where you can get a lot of help when you need it most, whether you’ve lost your passport, your money, or just want to know where you can travel with your dog.
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This post has been edited and updated by Lauren Juliff.
