Living abroad isn't always smooth sailing. Job loss, health problems, and unexpected life events can strike at any time. When tough times hit, where can you turn for help? How can you get through these challenges?
Dealing with financial insecurity in a foreign country
The COVID-19 pandemic has exposed the precarious situation of many expatriates. Some were already struggling to make ends meet, while others found themselves without any support almost overnight. The closure of businesses and the slowdown of economic activities plunged many expats into financial hardship. This situation was even more challenging for those with health problems who were affected by COVID-19 or saw their conditions worsen without access to medical care. Many countries provided emergency aid to help their citizens abroad during the crisis.
However, this aid was temporary and only lasted for the duration of the crisis. Embassies emphasized that these measures were exceptional and not meant to be extended indefinitely. Yet, many expatriates are still facing financial difficulties. Depending on their situation, they might be eligible for social assistance from their host country (such as unemployment benefits in case of job loss). Governments remind their citizens that social benefits are often tied to the country of residence. Nevertheless, some countries have programs specifically designed to support their citizens living abroad. Here are examples from Italy, the United States, Canada, France, and Switzerland.
Italy
The Italian Consulate General can provide emergency financial assistance to its citizens in severe financial difficulty residing in its consular district. This exceptional aid comes in the form of grants and "loans with a promise of repayment," subject to the funds allocated by the Ministry of Foreign Affairs and International Relations. Only Italian citizens registered with the Registry of Italians Abroad are eligible for this assistance. They must prove they are in a "genuine state of poverty" by providing tax returns, bank statements, evidence of local aid received, medical bills, etc. The consulate will contact the family to verify the expatriate's claims and assess whether relatives can provide financial support.
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United States
The U.S. government emphasizes that expatriates should turn to their relatives when facing financial difficulties. The embassy or consulate can help the citizen contact their family. However, no financial assistance is typically provided. Emergency aid may be available under strict conditions: medical emergencies, theft or loss of a passport, natural disasters, or the expatriate's death.
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Emergency Financial Assistance for U.S. Citizens Abroad: ,
Canada
Expatriates who have worked for a Canadian company outside Canada may be eligible for the government's employment insurance program. In the event of job loss, they are eligible for up to 55% of their income. Expatriates are directed to a Canadian office abroad (embassy or consulate) for general difficulties. These offices provide support and assistance in emergencies. Their knowledge of local law helps guide citizens to the host country's services that might offer financial aid, depending on the expatriate's situation. The government advises its citizens to register with the Registry of Canadians Abroad.
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France
French expatriates facing financial difficulties can receive several types of aid: fixed-term allowance (ADD), disability allowances for children or adults (AEH, AAH), allowances for older people (AS), exceptional aid (AEX), and occasional emergency aid (SO). The ADD can be requested for family or professional emergencies leading to financial hardship. Applicants must prove they are genuinely in need and are not receiving other assistance. Disabled expatriates may receive financial aid based on their disability rate. Elderly individuals unable to work for medical reasons can also receive an allowance. The AEX is intended for French citizens not registered with the Registry of French Nationals Abroad, prisoners, and visitors. The SO is meant for urgent situations where no other assistance is available. The state recommends its citizens register with the Registry of French Nationals Abroad and reminds them that the aid provided is temporary.
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Switzerland
Switzerland also offers social assistance to its citizens abroad (ASE). This aid can be a one-time payment (such as covering medical expenses) or a monthly allowance. ASE can also help with returning to Switzerland. The ASE services provide assistance based on the applicant's situation, and eligibility conditions will be verified. Also, keep in mind that the assistance provided must be repaid.
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How to seek financial help as an expat
The first step is to contact your family or friends who can help you, whether they live in your host country or elsewhere. Admitting financial hardship can be difficult, and pride often leads to silence. Many expatriates refuse to burden their family's finances, especially if their family is also struggling. Some feel guilt or shame about "failing", which is why you should definitely talk about your situation to avoid isolation.
The second step is to contact organizations that can help you. The local city hall in your host country can provide information on local aid and eligibility conditions. Your embassy or consulate can also offer valuable resources.
The third step is to seek guidance to assess your situation: are the financial difficulties temporary or chronic? Is your hardship worsening over time? Seeking external support can help you gain perspective and the strength to plan for the future. Should you change your job or industry? Should you go back to school or move to another city? Should you return to your home country? Returning home under these conditions is not shameful but a stage in your life. This return might be the starting point for a new life project.
