Re: pay off debt or dragons...your advice

Discussion in 'General Precious Metals Discussion' started by veryugly, Jul 8, 2011.

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  1. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

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    Wish my loan was based off inflation. lol.
     
    RetardedMonkey, Jul 8, 2011
    #21
  2. fishball

    fishball New Member Silver Stacker

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    It's even better than that, HECS is indexed to CPI which as we all know is lower than inflation due to them cherry picking statistics ;)
     
    fishball, Jul 8, 2011
    #22
  3. malachii

    malachii Well-Known Member

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    It's been a long time since I paid off my HECS but I thought they used a "bastardised" CPI - it was higher than the reported CPI.

    malachii
     
    malachii, Jul 8, 2011
    #23
  4. fishball

    fishball New Member Silver Stacker

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    My HECS statement for this year said my debt was indexed at 3%, what was the CPI this year as reported?

    Closest I could find was this.

    Anyway 3% is definitely below the 'real' inflation we're experiencing I reckon.
     
    fishball, Jul 8, 2011
    #24
  5. Slam

    Slam Well-Known Member Silver Stacker

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    Yep, they made me pay it all off last year. $5000 in 1 go, damn.

    At least I am hecs free now.

    To the OP, I would buy dragons instead. You will never get another interest free loan in life (well actually the only other interest free loan I got was the green loan, before they canned it). Keep the HECS debt as long as you can, if SHTF and inflation becomes out of control you can pay it off in no time and still have dragons in the other hand.

    Slam
     
    Slam, Jul 8, 2011
    #25
  6. renovator

    renovator Well-Known Member

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    Amen.If anyone needs to ask the question no explanation will ever be enough to persuade them otherwise .
     
    renovator, Jul 8, 2011
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  7. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

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    I'll probably have a HECS debt soon anyway. I want to study some more.
     
    RetardedMonkey, Jul 8, 2011
    #27
  8. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    IMHO that's a far better investment than 'dragons' .
     
    Clawhammer, Jul 8, 2011
    #28
  9. Elemental

    Elemental Active Member Silver Stacker

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    If you are earning over the HECS threshold you are far better off paying for the course up front - the universities offer an up front payment discount of 25% (I think - this may be 20% or dependent on the Uni - but check it out).

    What this means is if you are working at the time and earn over the minimum HECS repayment threshhold and then incur a few thousand dollars in HECS you will end up paying the entire amount at the end of the year in your tax return and getting no discount.
     
    Elemental, Jul 8, 2011
    #29
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