Thursday, 5 March 2009

When is it smart to pay your HECS debt down?

This is a bit of an old article from the Sydney Morning Herald, but I stumbled across it today while checking some payroll matters for staff at work, and it's very useful to know.

If you have a HECS debt, then there are ways, and times, to pay it off, that are more sensible and cost effective than others. Be careful that you don't fall into a trap of borrowing to pay it off, for instance (it will cost you more than it would if you stuck to the indexed rate). Pay off your mortgage first if you can. It's better to pay 2% of your salary once you reach the threshold (currently over $41,000 per year in the 2008-09 tax year) than hold back on getting your home or other things.

Anyway, it's probably better to read what the author man says. Here.

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