HECS debt

[turtleschell]

I just realised that my HECS interest is like $100 a year. HUGE.
I've never worked full time, so never had any compulsary payments taken out.

Someone told me I never have to pay it off if I never work full time? Is this true?

If it's not true, should I just start paying it off?
What do all you SAHM's do with this debt?

[Indadhanu]

At this stage, the rule is that once you start earning over I think its *about* $40,000 a year they take a small percentage out. If you aren't earning that much each year then no, you don't have to pay it. Your HECS debt it also wiped, if it is still there, when you die.

ETA: http://www.ato.gov.au/individuals/co...ntent/8356.htm Seems it almost $45,000 now!

[luna moth]

Yep, that's pretty much right, and you don't have to pay anything off it if you're not earning over the threshold. Also, while the yearly amount sounds like a lot, it's the lowest interest you'll probably get on a debt, as it's tied to CPI. Many financial advisers and economists suggest that it be the last debt you consider paying off - money put into your mortgage or other debts that have higher interest is a better choice.

[meow]

What do all you SAHM's do with this debt?

Blissfully ignore it I'm adding to it again with a second degree so I really don't bother looking at how much it is. It'll get paid off one day when I'm working again I guess. I have no plans to ever make voluntary payments.

[Lulliloo]

i never make payments on mine.. i have never earned enough. i don't think i will ever be earning $45000 tbh. im not practicing my "studied profession" so i don't get much money. and i hope to be a mum soon anyways and then i really won't be paying it off. good to know that it gets wiped if i die. i don't want my dh to have to pay that off.

[Junglemum]

I'm a bit of an ostrich about mine. Head in the sand kind of thing. I figure when i start working i'll start paying it. In the mean time i don't bother looking at the interest too much. Not sure if that's the smartest option though?!

[misty]

$45000 HECS debt and counting....

Will worry about it when I earn enough to have to pay it.

[Sopdet]

I paid the last of mine last year when my tax was done. Of course it will start building up next year when I'm back at uni & I'll be paying it because I will be earning over the threshhold, or I might just utilise the fee help they have and pay the subjects off during the semester so I have no debt.

[appletree]

Its the best kind of debt you can have IMO, it has no due date and is one of the lowest interest rates out there! Unless you have money to throw around, i wouldn't bother making payments too it either.

[ezymay]

Also be careful if you salary sacrifice with a hecs debt it can add to your reportable income and take you over the threshold. I learnt the hard way!

[Cherished]

I hate having debt hanging over my head so when my parents gave us $10,000 as a wedding gift we used it to pay off my hecs debt, dh also had a $15,000 hecs debt and we have paid that off this year also... neither of us ever even worked in those professions and it bugs me that we even went to uni to build up such a huge amount of debt which wasn't paid off until we were in our 30's! The money would have been better spent on a house deposit 15 years ago