https://www.qms.space/ News en-US hourly 1 http://wordpress.org/?v=3.5.1 Heading Overseas? You Can't Escape Student Debt https://www.qms.space/blog/article/heading-overseas-you-cant-escape-student-debt 6 July 2018, 11:49 am For many people, repaying student loans is low on the list of priorities for life. You may have relied on the Higher Education Loan Program (HELP) during your student days, or a Trade Support Loan (TS...

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For many people, repaying student loans is low on the list of priorities for life. You may have relied on the Higher Education Loan Program (HELP) during your student days, or a Trade Support Loan (TSL) during an apprenticeship, but paying it back is often treated as an optional obligation – especially by Aussies heading overseas.

While leaving Australia used to mean leaving your student debt behind (at least until you returned), this is no longer the case. With almost $2 billion in student loans reportedly being written off each year, the government is eager to recoup more of its investment in education by imposing stricter tax rules on overseas workers.

What's changed?

Since 1st January 2016, Australians who spend more than 6 months a year abroad have the same repayment obligations as those in Australia – namely, starting to make payments when their income hits the minimum payment threshold (currently $53,000).

If you're planning to go abroad, or you're there already, you're now required to file an overseas travel notification online. You'll also have to lodge an annual tax return stating your foreign income, or a non-lodgement advice form if you earned below $13,717 in the financial year.

This does not apply to certain types of student loans such as a Financial Supplement, Student Start-up Loan (SSL) or ABSTUDY Student Start-up Loan (ABSTUDY SSL). This debt will continue to be maintained in Australia and indexed every year.

What happens if I don't pay?

The Australian Tax Office (ATO) announced these changes as a voluntary scheme, but hefty fines can apply to those trying to avoid their financial responsibilities.

If you're discovered to have spent more than 183 days abroad per year without having notified the ATO, reporting your income and making any repayments required, the maximum fine is $3,600.

What do I need to do?

If you're getting ready to go abroad or you're already there, and you'll be spending more than 6 months (183 days) away from Australia within a 12-month period, you need to:

  • notify the Tax Office online within 7 days of your departure
  • lodge a tax return or non-lodgement advice form each year
  • provide any documents needed to calculate your income and loan payments, e.g. payment slips, tax assessments and deduction receipts
  • declare your total income through self-assessment, overseas assessment or comprehensive tax-based assessment
  • make the loan payment required, either voluntarily or through an overseas levy

How can I pay off my debt faster?

Your student debt will continue to grow with added interest the longer you leave it unpaid. If you're planning to return to Australia for work in the future, or if you find the new repayment scheme a hassle, you can choose to make voluntary loan payments to take care of your student debt faster.

If you need some debt advice, or you're thinking about taking out a loan to pay off your student debt, talk to Debt Fix's experts today for unbiased advice. Call us on 1300 332 834 to find out what your options are.

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How to Get Approved for a Loan https://www.qms.space/blog/article/how-to-get-approved-for-a-loan 22 June 2018, 10:00 am Whether you're applying for a mortgage or a personal loan, you need to have some assurance that your request will be approved. Not only is a loan rejection disappointing and demotivating, it could als...

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Whether you're applying for a mortgage or a personal loan, you need to have some assurance that your request will be approved. Not only is a loan rejection disappointing and demotivating, it could also make it harder to get approved from other lenders, as the rejection may show up on your credit report.

While there's always a risk that a lender won't offer a loan on your preferred terms, you can improve your chances by making sure you've provided everything that's needed and showing yourself in the best light. Here are 5 steps to help you secure the loan you want.

1. Make sure you're eligible

Even if you've got a great credit history, you could fall at the first hurdle if you don't meet the loan criteria.

If you're applying for a loan in Australia, you'll normally need to be over 18 and an Australian citizen, permanent resident or here on an eligible visa. Depending on the lender and the type of loan, you may also need to provide evidence of income and employment or other relevant documents.

These requirements should be clearly detailed on the lender's website and materials and should be read carefully to make sure you've providing everything you need to.

2. Maintain a good credit history

Even if you've had problems in the past, taking steps to improve your credit rating can show lenders that your situation has improved and that you're reliable at keeping up with your repayments. Not missing any payments on loans, credit cards and even phone and utility bills all contribute to a positive credit report.

It's also important to know what negatively affects your credit rating. As well as missing payments and defaulting on loans, lenders may be able to see if you've applied for loans with other firms at the same time, which could influence their decision.

You can get a free copy of your credit report once a year, or in certain circumstances. Find out more here.

3. Prove your stability

If you've been with the same employer and living at the same residence for several years, or you have other long-term commitments such as an apprenticeship, this can help you to look more stable in the eyes of lenders. Make sure they see it by providing the paperwork.

4. Make sure you can afford it

Lenders will want to see evidence that you can afford the regular payments required for a loan, or they may not grant it. You also need to be confident that you can keep up with these payments yourself, or you risk defaulting or being moved to a higher interest rate.

Try our borrowing power calculators to find out how much you need to borrow and how much you can afford to pay.

5. Get professional advice

Speaking to a finance professional could put your mind at ease and help you understand all the options available to you. Arrange a free, no-obligation consultation with our experts at Debt Fix to find out more about refinancing and bad credit loans tailored to your unique circumstances.

Call us today on 1300 332 834 or contact us online.

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