Basic education in Australia is free but college education can be quite expensive. After you graduated high school, the Australian government is not responsible for your education anymore. However, the Australian Government provides financial assistance to individuals who want to pursue higher education through the Higher Education Loan Program (HELP). The Higher Education Loan Program eliminates up-front costs that commonly discourage students from pursuing college education by giving them income contingent loans.
As its name implies, HELP is a loan which you will pay with interest when your repayment income goes beyond the minimum repayment threshold. The loan repayment may start even you are still in school or doing an apprenticeship if you exceeds the minimum repayment threshold. The compulsory repayment of HELP is made through your income tax but you are also allowed to do a voluntary repayment at any time and at any amount to reduce your loan balance.
The HELP compulsory repayment rate is dependent on your income. As your income increase, your repayment will also increase. If you have a bigger income, it means you can be free of HELP loans faster. It has to be clear that the compulsory repayment rate is solely base on your income alone meaning the income of your spouse or parents doesn’t count.
Computing for your HELP repayment can be quite complicated. The HELP debt repayment calculator can help you in finding out how much money and time you can save if you increase the amount of money you contribute monthly for the repayment of student loan. The HELP debt repayment calculator can only provide you an estimate based on the information you provide on the system. It can aid you in determining the amount you need to pay for the compulsory repayment. The exact amount of compulsory repayment can only be determined after you file your income tax.
There are many factors why we people accumulate debt such as unexpected emergencies, hospitalization or unemployment. However, the most common reason for being in debt is due to the bad spending habits. If you are spending using a credit card, it actually costs you money to spend money. Never being content is the most common reason why people are buried in debt. Plus, the lack of knowledge on how to manage that debt will make it worse and allow your debt to grow.
Everyone who has debt, regardless of the amount, wants to be free of that debt. When it comes to getting out of debt is not an easy feat as there is no such quick fix in paying the debt but we always look for a solution to that would help us reduce if not totally eliminate our debts. And that what’s a debt reduction services and debt reduction plan is all about.
A debt reduction service is a third party that offers services that would help you with your debt by working with your creditors. Most of the professional debt reduction service also offers debt relief programs such as debt reduction plans, credit counseling, debt consolidation plans, debt settlement, and bankruptcy.
The debt reduction plan is the solution most often suggested by credit counselors. The purpose of the debt reduction plan is to reduce and eventually remove your debts by reducing the fees and interest rates while arranging for a low monthly payment. With the debt reduction plan, you promise to pay the full principal of your debt in a specified time. You can efficiently manage your debts from credit cards and other lines of unsecured credit with an effective debt reduction plan.
A credit counselor can help create a workable monthly budget that would help you with in managing your finances. It will also be good for your credit score. The downside of this is that there is an enrollment fee as well as a maintenance fee, and it takes about 3 to 5 years to remove all your debts. And you stop with the program it is likely that you will lose the concessions arranged by your creditors. This means, that your debt will again go up and there will be foreseeable fees for late payments. However, if you are serious about eliminating your debt, a workable debt reduction plan is one of your best options.