12 years to clear student debt
Graduates coming out of university and facing a tepid jobs market could also face a 12-year wait to clear their debts.
The average student debt now stands at £15,700 and the average graduate starting salary is £22,300.
At this level, monthly repayments would be £54 - and debts could take up to 12 years to clear if their salary rises 4.6 per cent a year.
Owen Roberts, head of credit reference agency callcreditcheck.com, said: "Your finances as a student or a new graduate can be a tough.
"As a graduate in particular, trying to balance what may be a relatively low income with high debt levels, rent and other costs of living can prove very tricky."
He advised graduates looking at getting grounded to ensure they show a consistent ability to service your debt levels, paying phone bills, rent, credit cards, student loans etc on time.
Mr Roberts claimed doing this would make securing the most competitive loan deals easier.
A poll by Callcreditcheck found 64 per cent of 18 to 24-year-olds are more concerned about their financial situation today than in April 2008.
Some 44 per cent are not saving any money at all and eight per cent spend over 50 per cent of salary on unsecured debt.
Graduates start to repay their student loans one they start earning over £15,000 - based on a sliding scale.
- Tags:
- graduate loan ,
- loans ,
- news
Comments
Newsletter sign up