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How to pay off your HECS debt faster

So you’ve been to university and got yourself a degree. That’s great!

But now you’ve also got yourself a great big HECS bill.

You now face the daunting task of paying it off- pretty stressful right?

The way it works is that you can pay HECS upfront in full or part (as long as it is $500 plus) and get up to 20% discounted. However, students often can’t afford to pay their HECS bill until they get into the workforce.

To inspire higher learning and make it more affordable, the Government provides the option to defer payments and your bill then becomes an interest-free HELP loan.

Obviously you have to pay your personal cash loan off sometime, so the Government waits until you earn over $36,185 a year (2005-06 figure). When this happens, your HELP debt is repaid through the tax system, with automated repayments taken from your pay packet at four percent of your annual income, and up to eight percent when you earn $67,200 or more.

In this day and age however, more and more people are seeking the advantages of being debt free. We have realised that there are too many repercussions of having debts and not enough cash advance loans to go around.

Luckily, there is a smart way to minimise you HELP debt which can help you save money in the long run.

But what is it? Well you’re probably not going to like this, but the answer is simple. Save your money and make lump sum payments.

When you make a lump sum payment of $500 or more, you get an additional 10% of that payment taken of your HECS debt. So, let’s say you save your hard earned cash – every payday you put a bit of money away and rack up bit of savings over the year until you’ve got $1000 in your account to go towards the debt. Not only will you get your debt reduced by $1000, but you’ll also get an extra 10% ($100) discounted from your debt as well. If you can manage to do this a couple of times a year on a three year degree, you will be able to have paid $6,600 payday cash off your loan before you have even entered the full-time workforce!

So what’s the moral of the story? The more you can save in your bank account in the short term, the more you’ll save on your debt in the long run.

After helping thousands of Australians with their financial problems, we’ve gained great experience and insight into the everyday person’s money problems. We know what it’s like when both your wallet and your stomach’s empty. Our company <a rel=”nofollow” target=”_blank” href=””Payday”>http://www.paydaycashloan.com.au””>Payday Cash Loan not only provides short-term loans to Australians we also write articles sharing our financial solutions and tips, so you can take control of your finances and reach the ultimate goal – financial freedom.

Article Source:http://www.articlesbase.com/personal-finance-articles/how-to-pay-off-your-hecs-debt-faster-840282.html

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March 30th, 2009 | Category: Personal Finance | Comments Off
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