In a normal year, many Australians who attended university likely give little thought to their HECS debt. After all, we’re told time and time again it’s a “good debt” – one with no interest, no particularly onerous repayments and a friendly creditor (the government).
But 2022 isn’t any normal year, at least from an economic perspective. Inflation is running rampant, up 7.3 per cent on the latest official count, and forecast to hit about 8 per cent as the price of everything from petrol to health insurance rises.
Money editor Dominic Powell and senior economics writer Jessica Irvine are hosting the new podcast It All Adds Up.Credit:Dominic Lorrimer
While this is bad news for us all, it’s particularly bad news for anyone with student debt, which is indexed with inflation each year on June 1. This could mean an increase of nearly $2000 for someone with an average HECS debt of $23,685. Ouch.
With this scary deadline looming, on this week’s episode of It All Adds Up, we ask if it’s worth repaying some of your HECS debt early, or if it’s best to just let it ride and slowly pay it off over time.
A friendly listener also asks for our best tips on budgeting apps, and Jess reveals how a bit of discount shopping could save you money each month on your internet bill.
Have a listen on all major podcast players, including Apple Podcasts and Spotify, and don’t forget to send in questions of your own to [email protected].
- Information given in this podcast is general in nature and is not intended to influence listeners’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
For more money saving tips and advice, sign up to receive the free weekly ‘Money with Jess’ email here.
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