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Graduates - life after university

Graduating is an exciting time, with endless possibilities ahead. Initially your finances might be fragile after a few years of student life, so here are some ways to help you avoid getting into financial difficulties.

Make a debt list

With the advent of Student Loans, it's perhaps become more usual for students to leave university with debt, in some cases this can be more than £10,000. This is normal, so don't panic! The first step to getting rid of it is to take stock by making a full list of what you owe and to whom. Put them in order of priority for repayment, with the ones with the highest interest at the top. Next, have a look at how much money you'll need to get you through the first few months in work.

Create a budget

Your spending will be different than it's been for a few years now that you're no longer a student. Try to pre-empt what it will be and start putting money aside to chip away at your dearest debts (the ones with the highest interest). Also plan your budget for every day things such as travel, work clothes and rent. There's lots of helpful advice at Lloydstsb.com on how to set up a budget.

Plan your debt repayment

Try to work out how much debt you can pay off each month. Based on this figure, plan how much the debt will reduce over the months or years. Apart from helping you organise your finances, this will mentally give you a tangible goal to work towards.

Hunt for the best graduate account

Just because you've been with a certain bank while you were student, doesn't mean you have to stay with them. And although they may have given you the best deal as a student, the deal may not be as good for graduates. Shop around. As long as you've got a good banking history, can pay off any overdraft, and can prove that you've graduated, the banking world is your oyster. But remember to look beyond the freebies and introductory rates - think long term. Also weigh up the pros and cons of a graduate loan.

Start saving

Once you know where you are with your debt repayments, you can think about saving. A cash ISA could be a good starting point, as you don't have to pay any tax on the interest you earn and you can still get access to your money. You can save up to £3,600 a year, but you can save as little as you like as often as it suits you. Even if you just start saving a small amount, it will get you into a good habit.

Leave your student loan to last

A Student Loan is the cheapest loan you could probably find anywhere. In fact, when inflation is taken into account, you could almost say that the loan is practically free. So leave paying it off until absolutely every other debt has been paid off first. The Student Loans people won't start chasing you up until you're earning over £15,000 per year, but even then, just pay the minimum off each month if you still have other debts.

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