Gen Z are growing up and ready to buy their first homes, but many young Aussies are getting a rude shock when going for a loan thanks to their HECS debt.
A startling financial truth is threatening to ruin the future of an entire generation, and many of us have no idea it’s even a problem.“I went to speak to a broker about my personal circumstances,” Ms Wu said on TikTok.
Since 2022, the indexation rate has been steadily rising alongside rising inflation. This has increased graduates’ HECS debts exponentially in a very short time frame. “I successfully paid off my debt last year before the indexation rise occurred, and I’m now refocusing on saving back up a deposit,” Ms Wu said.Paying off HECS is about to get a lot more difficult for young Aussies in their 20s, with the indexation rate expected to rise again in June.
For Australians carrying HECS debt, compulsory payments kick in when they reach the minimum repayment income threshold to make a loan repayment, which is currently $51,550. When their income exceeds that threshold, a compulsory repayment of at least 1 per cent is taken.
Borrowing Poweraussie Rude Home Car Loans Borrowing Power Grace Ellen Macpherson Compulsory Payments Kick Indexation Rate Young People Loan Repayment Debt Petitionteal Minimum Repayment Income Eilish Senyard Rude Loan Awakening Teal Independent MP Monique Ryan Single Day Home Loans House Deposit Savings
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