We may not like to talk or think about it, but the reality is, many of Australians are financially in the hole.
Whether you’re up to your ears in student loans, stressing over an ambitious mortgage (here’s looking at you, Sydney) or just have no self control when it comes to Givenchy bags and Louboutins, we can relate.
We’ve collected real-life confessions of the actual amount of debt some of us are in.
From the financially squeaky clean to the down right irresponsible, you and your wallet are not alone.
Top Comments
For HECS / HELP debt there is a great thing -- until December -- which has been in place years, called voluntary repayments. They don't seem to be widely-known about...
You can make voluntary repayments at any time to reduce the balance of your debt. Making a voluntary repayment reduces your balance immediately.
You may still have to make a compulsory repayment if, after making the voluntary repayment:
- you still have a debt
- your repayment income is above the minimum compulsory repayment threshold.
- Voluntary repayments are in addition to compulsory repayments and are not refundable.
Currently, and until 31 December 2016, if you make a voluntary HELP repayment of $500 or more, you get a 5% bonus. If your HELP debt balance is less than $500 and you make a voluntary repayment to payout the debt, you will get a 5% bonus.
If you want to make a voluntary repayment, you need your payment reference number (PRN). If you don't know your PRN, you need to get it by 23 December 2016.
From 1 January 2017 the voluntary repayment bonus will no longer apply.
You can use ATO's HELP voluntary repayment calculator to estimate your bonus and the remaining balance on your loan.
https://www.ato.gov.au/Indi...
In other words, it's worth throwing at least a little extra cash at your HECS / HELP debt between now & Christmas.
HECS/HELP debt repayments come out of your wages. If the government want the money so badly, they would lower the threshold to $25k per annum.
A HECS HELP debt should not get in the way of purchasing a car or a house. It would be punishing someone for trying to better themselves.
Yes, but if you pay extra you get a discount, or a bonus technically I guess.
I am aware that repayments come out of wages.
I was attempting to highlight this:
"until 31 December 2016, if you make a voluntary HELP repayment of $500 or more, you get a 5% bonus. If your HELP debt balance is less than $500 and you make a voluntary repayment to payout the debt, you will get a 5% bonus."
So if you voluntarily pay the ATO more than the minimum taken from your wages, and that payment can be once-off/ ad hoc, you'll get a small discount.
It used to be higher at 10% a few years ago, and I'd tell others as not many people know about it,
but no one was interested. I found it got me out of debt quicker just throwing the odd bit in here and here every so often. I didn't want to carry that old debt with me into my 30s as I moved into other phases in life, like a wedding, buying a home, maternity leave.
Morally you are correct that it should not get in the way of purchasing a car or a house, but it does gt taken into account either by being included in your debt amount, or in lower net income when being considered for a loan or mortgage. It's money owed, and it can't be overlooked that is a reality.