Paying off HECS - HELP

LBlitzfx on 27/12/2016 - 00:20
Last edited 27/12/2016 - 00:23

Just curious on everyone's thoughts whether you're paying off your HECS - HELP debt before the end of the year for that 5% discount.

I wish I had paid that upfront 20% back in the day.

Comments

captobvious on 27/12/2016 - 01:45

It doesn't matter pay it as it comes, it is a pretty low interest loan anyway.
- dasher86 on 27/12/2016 - 11:09
  
  +2
  
  Unless you have other debts it's better to pay it up front.
  The 5% rebate is greater than most interest you will earn in a savings account and then you're taxed on that interest.
  - Blitzfx on 27/12/2016 - 14:51
    
    That's what I've been weighing up. I know bank loans are normally higher than the 5% so in that scenario, it wouldn't make sense to pay it off.
- pangwen on 30/12/2016 - 21:56
  
  Paid mine off this year to take advantage of the 5% discount while it's still available. If I had continued paying "it as it comes", it would have been fully paid off with my next tax return (i.e. June 30 2017) with no discount at that point. Hard to find a guaranteed 5% return for 6-7 months.
sagrules on 27/12/2016 - 10:30

What is the minimum amount to pay to get the discount?
- Blitzfx on 27/12/2016 - 14:50
  
  $500