This One Big Life-Changing Adventure Could Help You Get Out of Debt Fast

Many Americans are interested in leaving America. According to a 2024 poll from Monmouth University, 34% of Americans would like to move to another country—that’s over three times larger than the number of Americans who wanted to leave in 1974. This sense of wanderlust is especially common among younger people: over half (51%) of Americans under the age of 35 told the Monmouth Poll that they want to leave the country.  

The Monmouth survey didn’t ask why Americans want to leave the country. It’s possible that people are more interested in international travel than previous generations, with the rise of travel shows, digital nomads, and social media travel influencers. The global connectivity of the Internet makes it easier to live all over the planet and still keep in touch with loved ones in your hometown. 

But a big reason why Americans want to leave the country might be the financial stress they’re feeling. If you’re struggling with credit card debt, student loans, and other big bills, it might feel tempting to move to another country where you hope to have a lower cost of living and a more laid-back way of life. 

I sympathize with this feeling, because I’ve done it myself.

How I Saved $8,000 in One Year While Living Abroad…Without Trying 

I have firsthand experience of being an American living abroad. I lived in Japan for a year after college, working as an English teacher. Several of my American colleagues told me that they were able to save a lot of money and pay off all their student loans after only a few years in Japan, instead of 10 years (or longer) in America. 

In just my one year of living in Japan, I saved about $8,000. But I never felt as if I was being too frugal or making painful sacrifices. I had an active social life, a good salary, low taxes, and a much lower cost of living than I would’ve had back home. My apartment cost less than $300 per month. I didn’t have (or need) a car; I rode a bike and took the train everywhere. Restaurant meals were cheap, groceries were cheaper, and I had a fantastic time enjoying Tokyo’s nightlife with my friends without spending a lot of money. 

Moving to another country won’t solve all your problems. You still need to make friends, find community, take care of your health, and figure out what you really want to do with your life. But what if living in another country could help you get out of debt fast? 

Let’s look at a few reasons why living in another country could be a helpful strategy for Americans who want to get out of debt fast. 

Lower Cost of Living 

Many other countries might have lower living costs than in the U.S., such as cheaper health insurance and cheaper housing. Here are a few average costs that Americans pay each month as part of paying the bills to live in the U.S.: 

This rough estimate for the average cost of living in America is already almost up to $5,000 per month. And that’s not including taxes, leisure spending, or credit card debt payments. 

Many other countries might have lower costs of living than the typical life in the U.S. shown in the table above. If you could move to a country with cheaper healthcare and rent, and where you didn’t have to own a car, you could easily save $2,000 per month. 

Boost Your Income by Living Abroad 

Getting a job in another country is rarely easy. Not every country has a fast-growing economy or a job market with opportunities for immigrants. There are often language barriers, residency rules, and other bureaucratic details that make it hard to get a job in another country. 

But you might find that other countries give you better chances to increase your income. What if you could find a remote job that lets you work abroad as a digital nomad? Or you could use your native English language skills to teach English in another country. Or you could get a job in another country, but do a remote work side hustle to get paid extra cash in U.S. dollars, while benefiting from the lower cost of living abroad.  

Get a Tax Break While Living Abroad 

If you’re an American citizen, you still have to file a U.S. tax return even while living abroad. But the good news is, if you qualify, you can get a special tax break for Americans living abroad. The Foreign Earned Income Exclusion (FEIE) means that if you live in another country for at least 330 days per year, and pay income tax in that other country, you could exclude up to $130,000 (for 2025) of your foreign earned income from being included as taxable income in the U.S. 

So unless you’re a high earner, most of your income earned in another country is likely to be tax-free in the U.S. While you still likely need to pay taxes in the country you're living in, this could help free up more cash to put toward paying off debt or saving for other financial goals. 

Note: This article is for informational purposes only and does not constitute tax advice. Consult with a professional tax advisor for any specific questions about your tax situation.  

Moving Abroad Does Not Cancel Your Debt 

Keep in mind that moving to another country is not a way to run away from your challenges, financial or personal. If you owe money, the debts do not go away just because you live in another country now. You will still need to make arrangements to make payments on your student loans and other debts while living abroad. 

But moving to another country could help you find extra cash in your budget to get out of debt fast in a way that wasn't possible at home. Living internationally could also help expand your mind with life-changing perspectives, new friends, and exciting adventures. I’ve never felt more freedom than when I’ve been living and traveling in other countries. More Americans might want to experience the same feeling.