Shopping around for graduate accounts can help avoid debt problems
Shopping around for graduate accounts can help avoid debt problems
- Tuesday, 3 August 2010Graduates are being warned not to bury their heads in the sand over money problems, but instead seek
help with debt accumulated during their studies.
Interest-free overdrafts often shrink in the years after university, leaving many graduates paying a high rate of interest if they owe the bank more.
However shopping around for another bank account could be the solution for those with bulging overdrafts, according to Michelle Slade of moneyfacts.co.uk.
"Many graduates will inevitably remain loyal to their student account provider, but there is no reason why they can't switch to get a better deal," she said.
"By finding an account offering the highest level of interest free borrowing, graduates can ensure they don't pay more interest than they need too."
Last month, figures compiled by Credit Action showed that 55 per cent of students didn't think they would find a job after they graduated and nearly one in two believed it would take them over a decade to repay their student loans.
It's not just graduates, either - the UK's personal debt stands at £1,239 billion which is more than the country produces in one year.

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