Budgeting key for graduates looking to pay off debt

Graduates have been urged to work out a monthly budget in order to avoid financial difficulties in the future.

Moneyfacts.co.uk has noted that many recent graduates have a number of debts to a number of different people - typically parents, banks, credit card companies and the Student Loans Company.

This makes repayments hard to manage, and Moneyfacts analyst Michelle Slade believes budgeting is one way to ensure that graduates keep on top of their finances.

"Once you graduate and start work, it's a sensible idea to sit down and work out a monthly budget," she advised.

"It's probably the first time that you will have had a decent regular income, but at the same time you may have had to move to a new area for your new job and have additional travel and living costs. By actually working out how much money is coming in and how much is going out, you'll know how much is left over to put towards repaying your debts."

Another tip is to shop around for the best current account and credit card deals, and those not living with parents could save money by choosing the most cost-efficient home insurance cover.

22/07/2008 17:56:13