See If You Are Eligible To Reduce Your Payments And Get Relief

Get a quote today by filling out our short online form that takes minutes.

Get connected and receive a customized quote based on your needs.

Get the help you need to get out of your financial situation.

Help Debt 39

Published October 10, 2023

help debt 39

Managing your finances can be a daunting task, especially when you have accumulated debt from student loans. With the rising cost of education, it's not surprising that many individuals are struggling to pay off their help debt. Understanding and managing help debt is crucial for your financial well-being, and in this blog post, we will provide you with all the necessary information, answers to common questions, and practical tips to effectively manage your help debt.

What is Help Debt?

Help Debt, also known as Higher Education Loan Program (HELP), is a government loan available to eligible students to assist with the cost of higher education. HELP is comprised of four loan schemes: HECS-HELP, FEE-HELP, OS-HELP, and SA-HELP. These loans are specifically designed to support students with their tuition fees, living costs, and other related expenses.

HECS-HELP covers the cost of your course fees and allows you to defer payment until you start earning a certain income. FEE-HELP, on the other hand, is for students studying at private higher education providers and covers part or all of your tuition fees. OS-HELP assists with the cost of studying overseas, and SA-HELP covers all or part of your student services and amenities fee.

How is Help Debt Calculated?

The amount of help debt you have depends on your individual circumstances and the help scheme you are enrolled in. The key factors that affect the calculation of help debt are:

  • Total cost of your course fees
  • Your taxable income
  • The repayment threshold for the financial year

Once you cross the minimum threshold, a percentage of your income will be automatically deducted from your salary to pay off your help debt. The more you earn, the higher the percentage of your income will be deducted towards your help debt.

How to Effectively Manage Your Help Debt?

Here are some tips to help you manage your help debt effectively:

1. Keep Track of Your Loan Amount

The first step to managing your help debt is to know how much you owe. Contact the Australian Taxation Office (ATO) to get a statement of your help debt. You can also access your statement online through the myGov website. Knowing the exact amount you owe will help you make a plan to pay it off systematically.

2. Take Advantage of the Repayment Benefits

One of the benefits of help debt is the deferred repayment option, where you can start repaying your loan once your income reaches a specific threshold. This gives you some breathing space to adjust to the workforce without the added pressure of a loan repayment. Additionally, if you make voluntary repayments, you may be eligible for a bonus on your help debt reduction. Take advantage of these benefits and make extra payments whenever possible.

3. Budget and Prioritise Your Expenses

Creating a budget and prioritising your expenses is crucial for managing your help debt effectively. Make a list of all your expenses and categorise them into essential and non-essential. Cut back on non-essential expenses and review your budget regularly to ensure you're on track. Prioritise your help debt over other debts as it has a lower interest rate and should be your first priority.

4. Seek Professional Help

If you're struggling to manage your help debt, seek professional advice from a financial planner or a debt counsellor. They can help you create a personalised plan to manage your debt and also educate you on managing your finances effectively.

Additionally, there are also some government programs available to assist with the repayment of your help debt if you meet certain eligibility criteria. Look into these options and see if you qualify for any assistance.

Conclusion

Help debt can be overwhelming, but with proper management, it can be paid off effectively. Keep track of your debt, take advantage of benefits, budget your expenses, and seek professional help if needed. With determination and a solid plan, you can successfully manage your help debt and achieve financial stability. Remember, your help debt is an investment in your future, and paying it off will only lead to better opportunities and financial security in the long run.

 

Don’t Wait! Get Your Quote Today.

$15,000
$1,000
$100,000+
 
Relate Post

DebtReliefMagic.com and its affiliates are not debt relief companies, debt collectors, lenders, or creditors. DebtReliefMagic.com does not guarantee that debts enrolled in the partner program will be settled, lowered by a specific amount or percentage, settled in a specific time period, or that clients will be 'debt free' in a specific time period. DebtReliefMagic.com does not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice, or credit repair services. Not all debts are eligible for enrollment. It is essential to consult with a tax professional to discuss the tax consequences of settlement, and we recommend contacting a bankruptcy attorney for more information on bankruptcy. Please note that our services may not be available in all states and other restrictions may apply.


Credit Implications: The operator of this website does not provide debt settlement, credit counseling, or credit repair services. Independent, participating partners that you might be connected with may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine creditworthiness, credit standing and/or credit capacity. By submitting your information, you agree to allow authorized third parties and/or participating debt relief companies to verify your information and check your credit. Please be aware that a third-party partner may perform a soft credit pull during the application process. Debt relief provided by independent, participating partners in our network are designed to provide debt relief services to you.