Paying off HECS

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  retiredfeline on 28/04/2013 - 21:03

  http://www.ato.gov.au/individuals/PrintFriendly.aspx?doc=/co…

  lists that payment methods that ATO accepts. Obviously some options have fees.

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  coolsteps on 29/04/2013 - 10:56

  for large items ive always ask the merchant if they can put it through as multiple $99 paywave's on the same transaction not sure if you can do it at the PO. sometimes its not the system its the operator doesnt know how to do it. usually smaller shops dont know how to do it but ive have no problems doing it a larger stores like woolies and coles etc.

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    jzdhgkd on 29/04/2013 - 12:27

    +1

    Wow that sounds so dodgy, isn't the limit there so if a credit/debt card gets stolen the thief can only get away with purchasing small items and not some $10000 home theatre?

    But if it works then I suppose you might as well make the most of it!

    • 

      Gina Rinehart on 30/04/2013 - 00:32

      I don't think all operators would care enough to even realise the card is probably stolen. Ok, everyone on OzBargain knows the orange ING cards get 5% back and I'd let that through, but if someone comes in trying to buy >$100 of stuff and can't use the pin, I'd just say no. Waaay too dodgy to accept that.

      • 

        Magnate on 06/05/2013 - 12:24

        "The Wave & Save Rebates are intended to be used for everyday purchases only. Should you use the Wave & Save Rebates in a manner that is not satisfactory or in line with the intent of the offer, we may place a stop or freeze on your account or remove the account from the rebate."
        I think I might be pushing the barrow just a little too far here, although whether they actually have a process to detect it I'm not sure

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  wblim on 30/04/2013 - 14:10

  +2

  Hi,

  I think there is no need in paying your HECS early.

  Although there is a discount, I don't think it justify paying upfront. The money is more important to you now as a student than when you are gainfully employed. For example $1000 now is more important to you than $1300 in 3 years time when you are earning over 50K pa. Based on 3% annual inflation.

  There is no interest charged, however it is adjusted to inflation - currently at 2 to 3%. If you use the money on a sound investment you will be better off.

  That's my opinion anyway.

  Cheers.

  • 

    enforcer on 09/05/2013 - 08:51

    This is also what I've heard, so I'm avoiding paying HECS as long as I can.
    The debt amount grows with inflation only, but so does the value of your cash, and hopefully the amount you get paid as well. The discount I think used to be 20% for upfront payments, which was probably worth considering, but 5% is just one to get the suckers.

  • 

    siraitken on 09/05/2013 - 09:06

    I agree with Wblim.

    I think it is more beneficial to defer paying your HECS as long as possible as the real cost does not increase.

    I went through this same situation about 7 years ago and I paid my uni in full for the discount but I regret not funding my uni via HECS and investing the uni fees.

    If you put your money into paying your HECS you are delaying purchasing a house as it will take you longer for a deposit.

    The savings from paying your HECS will be pittance to the money you can make from investing.

    Remember cash is king!

    Note. If you have a credit card debt that should be paid well before your HECS fees.

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  justinp12 on 02/05/2013 - 17:43

  I do believe that our lovely Prime Minister is wanting to scrap the 5% discount on the $500 payment. So you may want to get in quick if you wish to do that.

  • 

    Magnate on 02/05/2013 - 19:47

    +1

    Yes I noticed this economically irrational policy change (ie. from the Govt's perspective it is actually better to have the money repaid early than keep lending it at a 0% real interest rate). It'll be paid off by the end of the month.

    Geez this gov't stinks when it comes to managing our finances!