Business & Finance What Debt Do You Have?

[bontshow]

Are you paying off a house, car, motorbike, boat, TV, HECS/HELP debt, credit card or personal loan? How much per week or month are you up for?

Do you tend to buy things before you have saved up for them, or do you hold off?

The strong 18-25 demographic on GD after moving out of the family home can struggle to set themselves up without being able to earn much of a wage yet, what approach do you take to achieving this? Are you still living with your parents, living in a share house, out on your own & battling or doing OK?

I would like to see compulsory super made optional up to age 30 to make it easier to get started, as it can be difficult to afford what you need without borrowing, which can lead to deeper trouble

 

[grizzlym]

I'd like to see negative gearing and similar tax benefits available to first home buyers. The people who need the help the most don't get it.

 

[DB10]

HECS obviously.

also have credit card, made some recent purchases which while I could afford to pay out-right, I didn't want to have to take that big a hit in one go. so some of it I put on the plastic.

 

[Gus]

renting a share house atm- no debts yet but will graduate from uni this time next year with a HECS debt needing to be paid off.

 

[nicko99]

probst free at the moment. I have a few friends who took out 25k loans to buy a car and they pretty much work to pay the loan off, would hate to be in that situation.

 

[rossi]

I have quite a large HECS debt but I guess I don't need to worry about it until I get a real job. Its currently worth about twice what my assets are though.

 

[grizzlym]

renting a share house atm- no debts yet but will graduate from uni this time next year with a HECS debt needing to be paid off.

I had 7 years of HECS to pay off... It was frightening, just free of it now.

 

[Gus]

I had 7 years of HECS to pay off... It was frightening, just free of it now.

Lucky mine will only be three years worth. Still, any kind of debt is daunting. I start worrying when my bank account falls below $300, so imagine if I was in debt.

 

[Copernicus]

Living in the US, it seems that their profligate ways have rubbed off on me. I am currently in rather more debt than I feel comfortable with, so I have been putting as much money as I can on it the last few months. It will take me a couple of years to get out from underneath the pile though. Mainly have credit cards and then student loans to deal with. I'm paying off my car loan early also so that the money from that is freed up.

I can't wait to get rid of the CCs, they are such a bloody burden and I still don't know how I managed to rack up so much on them.

 

[grizzlym]

Lucky mine will only be three years worth. Still, any kind of debt is daunting. I start worrying when my bank account falls below $300, so imagine if I was in debt.

When you finally get through it it's like a pay rise - instant 6% extra in your pocket.

 

[bontshow]

I had 7 years of HECS to pay off... It was frightening, just free of it now.

I was in uni 01-03 - 3rd year was paid upfront from an inheritance for the 25% discount, but didn't finish paying the 10k from the first two until last year - 2 years not earning enough to repay anything, then 4 paying off more each year until it was gone.

If I did a 6 year course, then 12 years after starting & 6 after finishing I still wouldn't be half way through it

 

[Messenger]

Are you paying off a house, car, motorbike, boat, TV, HECS/HELP debt, credit card or personal loan? How much per week or month are you up for?

As above. Currently paying FEE-HELP at 8% of my gross, which is quite a hole in the cash flow, regardless of how much comes back to me in my tax return.

I would like to see compulsory super made optional up to age 30 to make it easier to get started, as it can be difficult to afford what you need without borrowing, which can lead to deeper trouble

Why? Most <30's aren't going to be putting any of their own money into super, just taking the compulsory employer contribution. I'd much rather have nine-ten years of employee contributions invested and hopefully compounding.

 

[J_Moore]

HECs debt. That shit doesn't count though. It's an additional tax, not a real debt. Do you know why it's not a real debt? 'cause no one gives a shit if you don't pay it off.

Other than that, I'm debt free. I don't have a business or a house, and I don't intend to take out loans for anything that depreciates, if I can avoid it.

 

[WeetBixKid]

HECS, that's it. Yet to buy a house, & I never buy anything that I can't afford then & there.

 

[Team Mo']

I was meant to have a HECs for my first year but dropped out and didn't fill in the forms properly anyway. Got the oldman to pay it off and then I'll have pay him back. (unlikely but I can dream.)

Also have an ambulance bill that I owe to my parents which probably won't get paid.

 

[THRILLHO]

Just HECS/HELP and about $2,500 on credit card.

Not too worried about it. Am worried about my ability to save. My fortnightly pay seems to drain out of my account far too easily.

 

[wce4premiership]

3500 to parents.

Don't drink and drive*

*Multiple times

 

[bontshow]

Why? Most <30's aren't going to be putting any of their own money into super, just taking the compulsory employer contribution. I'd much rather have nine-ten years of employee contributions invested and hopefully compounding.

I'm talking about the employer contribution going to the employee, in the tax return perhaps, and only if the employee wants it to.

Extending the retirement age ensures there are still plenty of years for the super fund to accrue, with it being compulsory again once you hit 30. Even making it 25 would be better than the current setup.

But that extra 9% pay, especially when in place of paying interest on borrowing it, would be very handy in setting up. It makes no sense to me to have money against your name that you can't use to offset debts that are costing you more in interest than the super fund is making you.

I would have gone broke if it weren't for $20k of inheritance across 2 grandparents & a $3k trust fund in my first 3 years out of home.

 

[Messenger]

I'm talking about the employer contribution going to the employee, in the tax return perhaps, and only if the employee wants it to.

Extending the retirement age ensures there are still plenty of years for the super fund to accrue, with it being compulsory again once you hit 30. Even making it 25 would be better than the current setup.

But that extra 9% pay, especially when in place of paying interest on borrowing it, would be very handy in setting up. It makes no sense to me to have money against your name that you can't use to offset debts that are costing you more in interest than the super fund is making you.

I would have gone broke if it weren't for $20k of inheritance across 2 grandparents & a $3k trust fund in my first 3 years out of home.

That 9% is a statutory obligation on the part of your employer. And provided the market behaves on it's typical pattern that first ten years of money is working for you the longest.

If that money were simply added to salary and allowed to be spent at the discretion of the recipient it has inflationary ramifications and undermines the very reason superannuation was instituted, ie. to produce a generations of self sufficient retirees and reduce (or even eliminate) the pension liability to the Commonwealth.

I guess the other issue is then what happens when you turn 31. If super is then compulsory, you take a 9% pay cut.

 

[Rise_up_Stiffy]

300k mortgage. Go me

 

[Caesar]

I have a fair bit of debt, but outside of a mortgage my liabilities are definitely outweighed by my assets.

If I can't get a significant cash discount on an item I will make use of 24 and 36 month interest free periods on homewares and electrical goods, because often I'm better off investing my savings (particularly with the way the market is at the moment). I have a fee-free credit card that I put pretty much all my day to day spending on and always pay it off at the end of the month.

I am pretty heavily dependent on maintaining my current level of income to continue to live my lifestyle but given my industry, qualifications and the fact my career is on the upswing it is not a major concern. I also have very comprehensive insurance cover in case of contingencies.

Judicious use of debt is good, but few people bother to sit down and work out whether saving or borrowing is the best way to finance purchases. Most merely ask how much they want something and whether they can afford it. They don't go on to examine opportunity cost and value.

 

[Dawson]

I would like to see compulsory super made optional up to age 30 to make it easier to get started, as it can be difficult to afford what you need without borrowing, which can lead to deeper trouble

But you don't pay Super, your Employer does

 

[Caesar]

Indeed.

Anyone under 30 should be throwing money into super anyway. At our age, best value investment you can get at the moment.

 

[pezz]

Just finished paying of my HECS debt and holidays and am currently looking for a first home with the misses in the 500-550k price range. Was lucky enough to save a 150k deposit so the debt wont be to bad but still a daunting prospect being so locked in.

Also have a wedding to save for so that is pretty much another 60k in debt waiting to happen.

FML

 

[Black Flag]

i'm not paying back my hecs... not coming back.