University leavers ‘should switch accounts to avoid debt’

Graduates may face the prospect of more debt after leaving full-time education, it has been claimed.

The Fair Investment Company has highlighted the fact that new university leavers can face rising overdraft charges as their student deals expire.

They should switch to new offers for recent graduates, it said.
Spokesperson Ed Kendall commented: “Graduation is a big step ahead into a new phase of your life … it’s also a great opportunity to take a step in the right direction to get your finances organised.”

Over 230,000 students graduated this summer, most with some form of debt, the firm stated.

Mr Kendall recommended a high interest-free overdraft as an alternative to loans or credit credit card debt.

Recently, Halifax conducted a survey into the cost of student accommodation. It found that average weekly rents in the south-west were over £90, compared to £53.40 in the West Midlands.

By Jamie Price