Thoughts on sending money to Colombia

[Sol]

Hi,

I just sent some $3k+ to Colombia to pay for a honeymoon and I thought I'd share some of the painful lessons I learned:

1. Wire transfers may not be as cheap or as quick as you think they are. To send money to Colmena bank I have to go through Citibank; it would have taken 3-7 days plus I'd pay a fee to my local bank, to Citibank, and I'd pay the receiver's fee as well. That would have ended up being close to $100 in fees.

2. Western Union, which is what I used, was very quick with good phone service but the fees hurt. I paid $180 for the transfer AND roughly $100 for the cash advance fee against my credit card. Ouch! I didn't realize at first that money transfers count as cash advances which makes sense now that I think about it. Their web-site, I believe, has lower fees but their web site is very flaky. You get tiny discounts after your first transaction if you become a prefered member. Western Union did have a decent exchange rate - roughly 22,000 pesos to the dollar.

In retrospect I could have avoided the cash advance fee by using an ATM card over the phone, assuming I had the balance in my checking account.

If I had planned this out much in advance I could have given my fiance an ATM card (which might be illegal) and moved the money to that account and had her withdraw it.

Any other thoughts on how to move money to Colombia?

All in all, in 20/20 hindsight it would have been best to just buy the honeymoon package here. What little money I've saved by buying the Club Med (Ixtapa) package in Colombia has been erased by the hassle and fees of getting the money there.

Thanks,
Sol

[DFWGuy]

... in response to Thoughts on sending money to Colombia, posted by Sol on Nov 13, 2001

Another thought that came to my mind is a new thing they have for kids here in the states call VisaBuxx, www.visabuxx.com.

It is normally for kids but anyone can have it all you need is a social security number to set it up for them. In your case maybe your wifes name.

Here are the advantages I see in it.

1. It is not a credit card it is more like a visa check card.

2. You can use it anywhere that has the plus/Visa logo. I am pretty sure you would not have any problem in Columbia but anyone interested I will know for sure later this week when my step-daughter tries to use hers in Cali.

2. There are no overdrafts allowed at all.

3. You can review all withdrawals/deposits online.

4. You can SUSPEND it by clicking a button on the web site. So if you have a problem you just click and 2 minutes later it is no good.

You load money onto the card by transferring from a credit card, your debit card, or straight from the checking account.

There is a limit of $1200 per month which should more than work for most people.

There is a $2 fee to transfer money to it and a small fee $25 to set it up. No monthly or annual fees.

I got one of these for my step-daughter and it seems to work fine.

Just a thought

[JimSimon]

... in response to Thoughts on sending money to Colombia, posted by Sol on Nov 13, 2001

If I had to send $3000 to Colombia I would wire it to a bank account but there is really no GOOD way.  An ATM card works best for small amounts but there is no way for $3000.  That's about $6.000.000 peros and since the largest bill is $50.000 which is 120 bills.  ATM's run out of money over lots smaller amounts than that.

I used a credit union and my wire transfer was fairly cheap (if also went through Citibank).

Jim

[El Diablo]

... in response to Re: Thoughts on sending money to Colombi..., posted by JimSimon on Nov 13, 2001

I think an ATM works fine for large amounts also, it just requires a little planning in advance.  In ten days a person could withdrawl $3000.  If this is wedding expense cash a few extra days won't be a problem as the expenses won't come due on any one day.  Even in the event that the money is needed sooner rather than later, you can bet the parties will wait a few extra days for a 3K windfall.

Transferring large amounts of money into a foreign account may take a week or so anyway and who knows what Murphy's Law may have in store.  An ATM card is simple, cost efficient and by far and away the best way to go in my opinion.

El Diablo

[DFWGuy]

... in response to Re: Re: Thoughts on sending money to Col..., posted by El Diablo on Nov 14, 2001

I agree an ATM card works fine for this it just takes a little planning. You can withdraw about $500 (or $300) a day depending on your card.

My wedding there cost about 5K and my wife was able to withdraw all of it in pesos over about 15 days as she needed it.

I also looked at other ways and giving them an ATM card (NOT TIED TO YOUR MAIN ACCOUNT - I suggest setting up a new account especially for this and transfer money to it)

I used this method for my wife after we got married and now use it each month to send money to her family and it is the safest, cheapest way to go.

As far as being illegal who knows. It is my money and I have been doing it for 6 months with no interference from my bank or others so until that changes IT WORKS FOR ME!

[JunFan]

... in response to Re: Re: Re: Thoughts on sending money to..., posted by DFWGuy on Nov 14, 2001

Hello,
I live in Dallas also, with my wife who has been here for a little over 3 mos...send me an email sometime and maybe we can talk and maybe get together sometime.

Later,
Mike

www.sparhard.com/colombia.htm

[TG]

... in response to Thoughts on sending money to Colombia, posted by Sol on Nov 13, 2001

Just wondering about something. How many of the guys with Latina wives are sending money to the inlaws on a regular basis??

[DFWGuy]

... in response to A question, posted by TG on Nov 13, 2001

I admit we are.  I too have been curious about this. When we got married my wife was the only one working (her mother is 50 and her brother is 18 but just finished school).

I asked what the financial arrangements were before we got married and the house was hers, so I agree to pay the mortgage payment US180 per month.  

After we had been married about 6 weeks I came to find out they were also dependent on her for everything. I did not feel right to pull the rug out but I also did not feel that it was reasonable that we should support her mother and brother for the rest of their lives.

I agree to take care of them for 6 months to allow them to find jobs. That 6 months is up in December.  

They do not have full time jobs (to my knowledge) so it will be difficult but if we continue supporting them they have no incentive to work and they are both health and capable of working.

[El Diablo]

... in response to Re: A question, posted by DFWGuy on Nov 14, 2001

Age discrimination is rampant in Colombia.  Unskilled labor is more or less reserved for the young.  A 50 year old woman, unless she's a professional with recent job experience, is going to have an incredibly difficult time getting even the most menial of jobs.  I think it's unrealistic to think that she'll find employment anytime soon.  

The situation with her brother is different however.  The best thing for him is to get an education at one of the public universities.  Tuition for a year won't be cheap by Colombian standards.  I think you're looking a minumum of 1,000,000 pesos per semester or roughly $1000 (minumum) per year.  If you and your wife can afford helping him with the expense, it might be a good investment for the future of her family back home.

El Diablo

[H2-Oh]

... in response to A question, posted by TG on Nov 13, 2001

I think that most gringos that marry latinas send money every month to the wives family. The trick is not to send to much. The families tend to think that since a daughter has married a gringo they become rich. There is now a source of money or a money tree. The wives want to give the families a better life and their focus turns to getting a job and providing MORE money for their families in Latin America. This is a gentle pressure that the mother or father put on them. They are now the haves and the family they left are the have not, and it is their responsiblility to provide.This, of course is my opinion and experience. I welcome other points of view.

H2-Oh

[Pete E]

... in response to A question, posted by TG on Nov 13, 2001

My guess,at least half,but I may be biased because of my own situation and that of some close friends.
In my case my wife had a job and lived with the family and part of her income contributed to family expenses.If we didn't send money their situation would have got alot worse when she came with me to the US.A couple hundred dollars a month means alot down there,money is hard to come by.Even 50 dollars if you are tight for money.In some cases the parents are more well to do(more likely in Bogota)and the daughter may not have been contributing to the family.You can be sure if she gets a job she will want to send money.
You usually get a built in family when you marry a Colombiana,and you are their new rich relative.

Pete

[H2-Oh]

... in response to Re: A question, posted by Pete E on Nov 13, 2001

I agree with you Pete. I have one question for you. Do you think your wife should be working for your family here or working for her family in Colombia? How much is to much money for her family?

H2-Oh

[Pete E]

... in response to Re: Re: A question, posted by H2-Oh on Nov 14, 2001

My initial thoughts were I didn't want her to work,or maybe a part time job when she was ready,something that would not tie her(and us down) to 40 hours a week,50 weeks a year.I got out of that mode and don't want to be limited by it.
I guess my thought now are if she does go to work she can first pay all her and her sons personal expenses and then send money if she wants too.This would be a big plus from where we are,I would not be paying for clothes and spending money or sending money to her family.I guess at this point I don't expect her to contribute to food or household expenses.Then we can see how it goes from there.
How much is too much money to send?I'm not sure but I know she would like to help her sister also,which other than some gifts we have not been helping.I guess if she starts making significant money I will have to reconsider.My first concearn has been she will get so attached to having the money that her work will take precedence over things I want to do.
One other little issue now.I need to talk to her about this.In checking her bank account her mother took out more than we said,but there was a deposit I didn't make.Where did she get the money?I will give her spending money,maybe $100.A few days later she will ask for money for some minor thing.What happened to the spending money I gave you?I think its the extra money sent to her mother.I think she sort of hoards her money and asks me to pay for any new expenses.Seems like there is my money and her money,of course hers came from me anyway.Reminds me of the old saying whats mine is ours and whats hers is hers.Also,she helps herself to my change,rolls it up and deposits it.I go to grab some quarters for parking meters and there are none.
I think she thinks I have plenty of money and her family needs it more.
In a way it would be good for her to work to have her own money.They other thing I have thought about is just giving her a monthly allowance that includes the amount we agree to send her mother.Then if she want to give her mother more it will come out of her money not mine.
There is one further complication.I lent(gave of course)her family a few thousand dollars to start a small business after her father in law lost his job.All reports have been the business(a plant nursery)is doing well and making money.I was thinking I don't care if they ever pay me back if they can just make enough money I don't have to send them any more we will be way ahead in the long run.We sent no other money for about 2 months,then recently we got hit up because their refrigerator broke and they moved to a larger house.I was hoping the rent for the larger house could get covered out of the business income.We will see.Another reason for the larger house is we will stay with them 32 days over Christmas,so its partially for our benefit.I could spend more money in hotels on our trip than their house costs for a year.
My worry is that the business will not make it,they will spend the inventory and then be broke.If that happens my wife better get a job.I'm not going to kick in alot more than I already have.
OK,I kind of bared our money arangement with her family.My wife would be mad if she new how much I said.These are good people,not flakes,but they can get to depend on you if you let them.In a way I'm lucky I have the money to do this,but income is down now and I should be cutting back on spending and not spending my reserves.I guess i would say if you have a tight budget you better get this under control early.

Pete

[DFWGuy]

... in response to Re: Re: Re: A question, posted by Pete E on Nov 14, 2001

Man I feel for you, I and other struggle with the same kinds of issues. It is the devil balancing love and money ain't it brother.

[H2-Oh]

... in response to Re: Re: Re: A question, posted by Pete E on Nov 14, 2001

I have much the same concerns. The family becomes dependent on whatever money you give them. If the fridge breaks, no problem, get the money from the money tree. It is a subtle, slow but continuous pressure to get more and more. Maybe this is human nature but I think it's wrong. I for one did not go to Colombia to find a family to support. I went to find a wife and have a family here in the states. I know of one wife that is here that is only concerned about getting enough money to buy an apt. in Colombia. Something for herself. We have talked about red flags before on this board, I think this is a huge red flag if the wife is more concerned about her family south then the one she has here.
Your thoughts.

H2-Oh