For many young Australians, their annual tax return is an opportunity for extra spending, while some prefer to use their returns to pay off their HECS-HELP debt. Given this is a popular use of tax refund, it is worth tackling the question: Is it better to pay off your university debt as quickly as possible or slowly chip away with the standard small compulsory repayments? The answer may surprise you.
The HELP-HECS loan is unique in contrast to other debts, such as a credit card. Your HELP-HECS debt is likely to be the best loan youll ever have and an excellent example of good debt.
The government indexes the interest on the loan annually according to inflation and the percentage deducted from your wage only incre…
Read the full article at: http://www.lifehacker.com.au/2016/07/why-you-shouldnt-use-your-tax-refund-to-pay-off-your-hecs-debt/