We have a big subject to cover in this article, and I am not going to be able to cover it in detail. But I have seen so many questions on these subjects and so many other fellow Philippine expats “lost at sea” on these issues I felt I really need to take a shot.
First of all, US mail in general is a big issue for many readers here, especially those who haven’t yet made the move. When you first start thinking about the issues involved, they can seem like a mountain to climb. But with a little work, my first solution step is to turn the mountain into more of a molehill:
First: Eliminate
When my wife and I were living in Colorado, making final preparations for our permanent move to the Philippines, I took an informal survey over about two months and found we were receiving about 15 or 20 pieces of First Class mail per month. If that seems low to you, remember, at least 70% of the paper in your mailbox every month is bulk advertising type mail. The US Postal Service will take care of that for you … they don’t forward it. So just the act of moving itself will eliminate at least two thirds of you mail, then and there.
First Class mail, such as bills, checks, bank statements and such will be forwarded, for free, for one full year by the USPS. And yes, in spite of a lot of misinformation you may hear, this absolutely includes foreign addresses. So if you file a Change of Address form with your servicing post office, you will get (hopefully) all your First Class mail … eventually.
My advice though is, ruthless cull what’s coming in now. You really want to forward, if possible, none at all. Is that an unobtainable goal? Possibly, but my wife and I got ours down to virtually none at all before we moved, and that was 7 years ago … today you can get yours down even closer to zero with a little effort.
Personal mail from family members/friends:
Easy. Just say NO. Even grandma can learn to use email … better yet, perhaps, Facebook or similar social services. They don’t know how? Well, that’s easy, help them learn. Birthday cards and such? Even easier. Show them the multitude of on-line services which offer online greeting cards, “virtual birthday cakes” and so on. And if grandma is in the habit of sending a $50 bill along with the card for your birthday, you should get her off this financially dangerous practice now, even if you never actually make the move to the Philippines. Help her open a free PayPal account. She can send cash to you, free, anywhere in the world with just a couple mouse clicks … and it’s way safer than sending cash through the mail … even the US Mail.
Incoming Bills:
First of all, most of those bills are going to go away when you move. But things like credit cards, mortgage payments, utility bills and such ought NOT to be coming to your mailbox in this day and age any longer. anyway. Most banks and businesses WANT you to go paperless with your bills anyway, so dig around their websites or call their 800 number and find out the options. Simplify your life, even long before your Philippine move, and save a tree.
Incoming Checks:
If you are still getting paper checks in your home mail box, shame on you .. or on the business who sends them to you. Paying bills by check is expensive and fraught with risk. Virtually every bank in the US that I have found can be paid via the ACH (Automated Clearing House) system. Example. a number of my online income sources use the ACH, so when I receive my monthly earnings they are just automatically deposited into my bank account via ACH. Likewise my government annuity checks and my tax refund. I just put the routing number and the account number on my forms when I submit them and when I check my US credit union (I don’t use US banks, you shouldn’t either, more on that another day) the deposit is there … safe, secure and absolutely free.
If I were still drawing a payment from a government agency, I’d be required to accept payment this way, anyhow (Direct Deposits), so “Why fight city hall”
If an individual needed to pay me a one-time payment … as when I sell a website, why there’s no problem either. I just require when we start negotiating that they will pay me via PayPal, when the deal closes, they forward me what they owe via my PayPal account. I can retrieve actual cash money from my PayPal account with a debit card here in the Philippines, or I can instruct PayPal to deposit money into my credit union account any time I want them to with one simple website transaction. I don’t make money from sources here in the Philippines, but if I did, I can ask the person paying me to send the money to my PayPal account in Philippine Pesos, PayPal offers me the option of keeping a separate Pesos account or having the money converted to US Dollars at the current rate, on the spot. (good luck doing that through the mail)
Managing Investments:
I don’t happen to have any stocks and bonds right now but if I did, all the major brokers typically only use online bill pay, direct deposits and electronic monthly statements anyway. I know of a number of expats here in the Philippines who make money (some of it substantial) by “day trading” stocks or ForEX (Foreign Exchange Currency Trading). It’s all done online anyway. so they can “ply their trade” just as easy from the Philippines as they could from Melbourne Florida or Melbourne, Victoria or Melbourne in South Derbyshire. There is no reason at all to be tied to paper mail.
Outgoing Checks:
But Dave, what if I owe someone in the USA money and they don’t have PayPal or don’t want to work with me online? Well, that’s very simple too. I just go to my credit union’s online banking service and enter their address and, for free, my credit union will cut an old-fashioned paper check and mail it to any address in the US. And after the check clears, my online banking account allows me to pull up a scanned copy of that check in case there’s ever an issue where I need to produce proof that the person I paid received their money.
But What When All Else fails:
Well if you absolutely positively have to get a piece of paper from the USA to your own hot little hands here in the Philippines, guess what? The person sending the mail can go to the US Post Office and mail it to your actual Philippine address. Sending a letter from the US to the Philippines costs $1.10 USD, last time I checked.
Mail here in the Philippines can be slow and at times problematical, but it certainly does function. You can read everything you want to know about sending international mail to the Philippines (including which towns and cites in the Philippines can receive US mail by clicking here.
If you happen to be a retired US military person, as I am, you have another great avenue of communication. Due to the volunteer efforts of some really great folks at the RAO’s (Retiree Affairs Offices) in the Philippines, limited US mail service is available to special Military Mail System (APO/FPO) address to and from the Philippines. See this for way more info.
And If I Didn’t Answer Your Questions Here?
I think I mentioned at the beginning of this article that it was a big subject. I’m already well over 1300 words … way more than most of you will sit still for. So I promise to fire off another article, RSN (Real Soon Now) covering mail receiving, mail forwarding and great services who scan your mail into electronic form back there in the USA and email the file to you so you can print your own paper copy … or how you can have your correspondent back in the USA fax a copy from you and have you fax back your signature. Remember, it’s more fun here in the Philippines.
Good article Dave, I just came back from the mailbox before reading this and most of the contents were junk mail, something I will not miss… For me most of my correspondence is electronic, and most bills are as you mentioned ACH already, so changing a couple more will be a snap. But I think that as a modern adult making a move of this magnitude I’ll be trying to get everything arranged just so, and this gives me another piece of the puzzle. Thanks
@ SteveC
Steve, thanks for the kind words. And remeber my frequent advice to apply the KISS principle. Whenever I see the “move of this magnitude” sort of comments I automatically think of someone addicted to stress. I know this sounds trite, but it’s really not such a big deal to move to the Philippines … and it is certainly not irreversible if it turns out to be a disappointment.
Getting things “just so” is distinctly NOT possible here, in my experience, so save yourself the heartache and learn the phrase you have to know to live here happily .. pwede na… “Good Enough”.
Problem is not getting mail from US to Philippines . Problem is getting from your local post office to your house . Average wait time for us , about 10 – 14 days… 🙂
@ Alan Ckib=ne,
Fully agree. That’s why I emphasize fellow Americans do away with our paper mail addiction. It does not work very well here. (one can also live in a town with post office large enough to have rental PO boxes … seems to work quite well for those who have them).
I mailed a Christmas card in December 2012 to my elderly aunt in Manila like I’ve done for years. In June 2013, the card was returned to me (San Diego, CA) stating no such address…..same addess I’ve been using as before. I’m a little leery of sending mail again.
My sister sent me a small package that took 11 months. Most of that time was spent sitting at the cdo post office. Use tracking numbers on express mail ..it helps
@ Heidi and Dan,
Yep, that is exactly why I recommend International Express Mail service. It gets delivered. My wife recently received a letter for Australia in 5 days total.. Does it cost more? Oh yes, but the standard rule always applies .. Cheap, Fast, Good … Pick Two.
Dave;
The mail I receive through the RAO system (As you mentioned above) is minimal, but even if I didn’t have access to that I’d be fine. Paperless is the way to go as with direct deposit. Great article, great advice! Snail Mail, who needs it?
@ Paul Thompson
So true Paul, so true. What many Americans don’t realize is, US Mail is going to change a lot in the hear term future (in fact it already has, curtailed Saturday deliveries, etc.) Many people bitch about the USPS as if it were an agency receiving tax dollars like Social Security and others that send out money and benefits and get money direct from taxes. The USPS has to fund itself (they haven’t received tax dollars from Congress since the 1980’s. And like any business it has to balance its books. Paper is disappearing and thus so is income for the USPS … might as well beat the rush and stop depending upon them … it’s a “buggy whip” industry at best.
Hi Dave, I am curious, what home address do you use for your credit union in the US? This is a debate that my wife and I have. I am retiring in 2 1/2 years and we are planning on moving to Davao. I know Bob has probably covered this previously, but I was wondering if I have to have a US address? Good article.
@tevo,
Good question. Because I am a retired military member, I avail of the military mail system (FPO address via the good services of the RAO). So I use my US FPO address with my credit union, the IRS, Social Security and other official agencies. APO/FPO addresses are considered US addresses by most agencies and institutions.
But if you are not retired military, and thus can not use the military mail system, I’m not sure what you should do. Best to talk to the credit union themselves, well in advance and find out their requirements. You can always use a US-based mail receiving/scanning/forwading company.
Hi Dave thank you for the good advice. I am moving in a couple of months to Davao and you and this web site have given me a wealth of info for my move. I always learn something new, I haven’t thought about…. so glad you guys are here and thanks a lot .
@ DaveC
Thanks for the kind words, sir. A good friend of mine who blogs in a completely different genre’ has used the tag line for years, “I do these stupid things so you don’t have to”. Glad to be able to help.
Dave,
Can you also talk about FedEx and UPS in your next post. Much appreciated.
@ PapaDuck,
I’ll put that on my to-do list. Can’t write that much though, as I have very little experience with either company. Experience I have had indicates (especially FedEex), slow, very expensive and uncooperative. Maybe others have had better. When I have to ship anything express, I use LBC or JAC (Johhny’s Air Cargo). Far superior in my opinion.
Nice article. But please please please work on that article about not using US Banks.
thanks
@ John,
Not sure when I’ll write something like that here on LiP, I’ve many times said plenty along those lines. I recommend a US Federal Credit Union … there are hundreds to chose from. Credit unions are not allowed to make th sort of high risk investments and junk bonds and toxic mortgage exchanges that US commercial banks have been allowed to for several years now .. since just before the meltdown of 2008, actually. Licensed US government-backed criminals in my view. Read more at:
http://philfaqs.com/live-there/banking/one-of-the-reasons-i-recommend-you-dont-use-a-us-bank-while-living-in-the-philippines/
Or ask it to be held at the post office and go pick it up… much quicker and less chance the envelope will be broken into.
@ Stephen M
Excellent idea. My ,local Philippine post office does not have lock boxes .. PO’s in major cities do. I never thought to inquire about their policy on holding mail. Certainly won’t hurt to ask.
Problematic not doubt…. I mailed anniversary letters to my wife in 2011 and still to this day they have never been received or returned. This wasn’t the only time I have had this issue either. I do know that the mail IS getting to Manila, but I dont know what happens after that. But I must say, vice versa (Philippines to US) via LBC is outstanding… Anytime my wife has sent me somehting thru this carrier I have always received it within 4-5 days (East Coast).
Why you do not use Virtual Mailbox? I can pay any bill online with my bank.
@ John,
Yep. I believe I suggested that in the article. Certainly works for me.
Good article, Dave! and great quote too “Simplify your life, even long before your Philippine move, and save a tree.”
For greeting somebody, the e card works! some sites are free with music too. For mail, packages Fedex is fast.
@ Sugar,
Thanks for the kind words. FedEx certainly works but I much prefer LBC. And hey, they are a Filipino company 😉
I heard that the US Social Security system will not send benefits to a Philippine Bank for direct deposit. My present plan is to continue receiving them at a US bank and then XOOM part of the money to my Philippine bank as required. I use on-line banking both in the US and with my PI bank. Direct free transfers of funds between these backs still seems impossible. Any better ideas?
There are a number of Philippine banks that accept direct deposit from Social Security.
@ Larry Saum
Thanks for writing. I don’t know where you heard that US Social Security benefits can not be direct deposited in the Philippines, but it is quite possible that you heard wrong. depends upon what you mean by “benefits”. SS retirement (annuity) payments .. yes. SS Disability Payments,.. yes. SS SSI payments? no. There are a number of other programs for which the US Social Security sends out payments, and the rules vary. Best bet:
http://manila.usembassy.gov/us-agencies2/the-social-security-administration-division2.html
This is the only Social Security Office outside the US and US possessions. They are who you will deal with if you live in the Philippines. The only reliable source, so far as I am concerned.
Personally I do not have my SSA Retirement sent to the Philippines. Receiving SS retirement overseas has a LOT of restrictions that are not present for direct deposit in the US. I have it direct deposited to my US credit union account and then deposit my own check here in my US dollar account. But many people here do have their retirement check direct deposited.
Hi everyone,
I found myself living in the Philippines for eight years with more mail than you mention in your article. There were some things I could simply not avoid getting by snail mail. My solution to this challenge was to have my daughter scan all incoming mail and send it to me via email. It worked great! I received the contents of the mail within a day or two of its arrival to my stateside address. When I needed to pay somebody I used its bill pay, I used Quicken Bill pay but today would use bill pay from my bank as it is cheaper and would work just as well.
Overall your article was very informative and addressed a lot of the problems someone new to the Philippines might have.
Gene Wilson
@ Gene Wilson.
Hi Gene, thanks for dropping by. Indeed the dutiful son or daughter (I give thanks every day for my wonderful son back in Colorado who let’s me use his mailing address and who scans and sends me things when needed). My article was already way overloaded with words, though ;-).
Another solution for those places which insist on paper (say a lawyer’s office when some legal issue is underway) .. fax. It’s easy to get an online fax number and have them fax things to you, and then fax back responses.
Great article,
another thing to add very few people think to do: give people and businesses/ agencies your Philippines mobile number. If you don’t have one, have someone there buy a SIM and send you the number so you can activate it when you get there.
@ Gypsy,
Wow, yes, that’s a great idea. And, fair warning, do as Gypsy said, just have them send you the number off the SIM card, but do not activate it until you are in the Philippines. Once you activate a SIM card here it expires in just a month or two if not used. Google, for example (one of my business partners) uses my Philippine mobile number as part of their security system. US businesses are making more and more use of texting (SMS). It’s certainly part of the solution …
Nice and timely article Dave. We moved last month and I set up an online mail box at virtual post mail in California. Almost all of my mail in now electronic, except a very few things that the institution insists on sending through snail mail. We’re in the Philippines now and heading to Cambodia next week.
@ Kevin
Sounds like you are making good headway, Kevin, at “stemming the flow” of paper. Keep us in the loop, you are going to be dealing with the issues from three different countries, not just two. Best of luck.
This is a great article Dave, and has a lot of information someone like me is looking for regarding banking and mail forwarding. I’m looking forward to NOT getting any more mail. I started electronic email billing a long time ago, but most of that will be gone once I no longer have U.S. bills to pay. I’ll just have to get used to paying for my electric, etc. in the Philippines. A new system, but I’m looking forward to the experience… until I try it probably. 🙂
Looking forward to more on this topic soon!
@ Scott Fortune
Yep, you have the picture, Scott. If folks will just be a little “rebellious” and refuse to accept the status quo, it’s remarkable how many pieces of that paper US mail we really can do without.
Informative article Dave. I’ve got to work on some of these things. I’ve not had a satisfactory experience with electronic banking. I guess I’ll have to shop around some more.
Take care,
Pete
@ Cordillera Cowboy
Thanks for writing in, Pete. Were you issues with electronic banking US-based or here in the Philippines?
I’ve been a remember/banking user of the Security Service Credit Union in the US for more than 10 years now. Their service has been flawless, except for updating their web site too darn often 😉
Here in the Philippines I use Banco de Oro (BDO). Their online system is virtually the same as the US system. It has worked well for me, I even use it to send load to my cell phone when I run low. I have one regular monthly bill (my backwoods cable company) who will not accept electronic payments … aside from that all has been good.
Incidentally my BDO online banking is much more secure than the US system, for example you have to not only have the usual user name and password, but a cell phone pre-registered with them.
When logging in a second “one use” password comes to you only via your own cellphone and is never used a second time (Oh., and if you don’t have your cell phone, or it’s busted, you can call their toll-free number on any phone and a service rep will help you sign in manually … using some separate security procedures which are never used online, so no one can accidentally steal your user name and password and log on automatically as you .. which essentially all my US based accounts do.
Banking rules, regulations, loans, credit investigations and such are way tighter on the Philippines than in the USA, Often Americans bitch about a lot of bureaucratic procedures, but the banking rules here are “tight”, just the way I like them.
My experience has been stateside. We kept having late payments. When we inquired, we found our bank received the electronic request from us, then cut a paper check and sent it through the mail. We had to continuously adjust the dates of our requests. That got to be a pain in the rear. I’m something of a Luddite when it comes to computers. Marlyn is the computer savvy one of us. She manages to transfer money to our account in the RP without problems.
Take care,
Pete