Graduates should prioritise the order in which they pay off their debts, starting with more expensive things such as credit cards first, one expert has advised.
Richard Brown, chief executive of moneynet.co.uk, explained that people have a long time to repay their student loan so it makes sense to clear any credit card bills first.
He said: "Some people graduate with substantial student debt but it is a fact of life unfortunately, whereas carrying big wads of debt on a high interest credit card isn't."
Paying off expensive debts such as credit cards first is "common sense", he added.
As student loans tend to be interest free, people should also attempt to pay off any other loans they have quickly, as these will not be, Mr Brown stated.
Research by Credit Action shows that total UK personal debt stood at £1,436 billion at the end of April, an increase of 8.4 per cent on the same time last year.
News Side
Graduates should pay off credit card bills first, expert advises
Thu, 19 Jun 2008
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