On 1 June 2023, your HECS/HELP debt, along with 3 million other Australians, will go up by 7.1 percent – the highest hike in many years.
Often considered an ‘interest-free’ loan, high inflation has caused the indexation to spike to one of the highest levels in decades – with many considering whether they should decrease their debt prior to 1 June, before it goes up.
With HECS/HELP debts impacting a person’s borrowing capacity, now might be the time to consider paying down some or all of your debt prior to the indexation. It’s important to note that while 7.1% is a significant increase, it is still not as expensive as credit card loans or personal interest rates, but if you have some spare income or savings, then paying an amount prior to the indexation date of 1 June will make a difference to the balance and the time it takes to pay off the loan in the future.
What difference will the 7.1% make to my debt?
