Those who have recently finished university have been offered tips on finance and getting out of debt.
Moneyfacts has said post-university debts are likely to be spread between credit cards, overdrafts, the Student Loans Company and graduates’ parents.
The financial information website has suggested a number of ways to address this and become a debt-free graduate.
A monthly budget is recommended once full-time employment is arranged, which shows how much can be put aside for repaying debts after all income and outgoings.
Once the figure is established, Moneyfacts suggests making a “sensible” debt repayment plan. Paying off all student debts in one go is not necessary, the site says, but it should be a priority. Student loans are to be paid off over a working life.
To avoid further debt, choosing an interest-free graduate overdraft and credit cards with zero per cent balance transfers is recommended. However, attention should be paid to changes to authorised limits and fees for unauthorised borrowing.
The majority of graduates leave university with debts running into five figures, Moneyfacts said.
By Morwenna Kearns