Nefesh BNefesh

If you have student loans, credit card debt, unpaid income taxes, alimony or any other type of debt, it is important to make sure that you have a viable financial plan before you can consider making Aliyah.

In considering your application for assistance, Nefesh B’Nefesh considers whether your current level of debt is likely to prevent you from adjusting successfully – financially – in Israel. In our experience, the decision to make Aliyah is a process that requires careful logistical and financial planning; and Nefesh B’Nefesh does not actively promote this move in situations where it seems that significant obstacles may prevent an easy and successful transition.

If you will need to repay your debt on a monthly basis, it is important to ascertain whether the monthly cost of payment is something that you can absorb while supporting yourself on an Israeli salary. If not, it may be wise to wait until you can pay back a significant chunk of your debt, before making Aliyah.

Making Aliyah is not an escape, and it is crucial not to leave debts unresolved. Creditors generally continue to try to find you at any contact numbers or addresses that they have, even if you have already left the country. Regarding credit card debt, in some cases, companies can be approached for a settlement. In some cases, creditors will be happy to come to a compromise solution by eliminating some of the interest charges or penalty charges for late payments. If and when it is possible, it is best to try and finish with credit card debt by negotiating a compromise before you make Aliyah.

In the case of student loans, these can frequently be consolidated in order to minimize the payment that is owed.

For more information about handling debt, please see the following online resources.

• For information on consolidating federally-guaranteed student loans: www.loanconsolidation.ed.gov
• General information on student loan consolidation: http://www.finaid.org/loans/consolidation.phtml