It is very important that recent graduates take the time to sort out their finances, an industry expert has said.
Recent research from the Association of Investment Companies suggested that students starting university this year can expect to graduate with around £20,000 of debt.
As a result, Michelle Slade, an analyst at Moneyfacts.co.uk, said that it was critical recent graduates sorted out their finances as soon as they finish university.
He suggested that recent graduates should "work out a monthly budget" as soon as they obtain their first job. Mr Slade said this would be the first time most people had a regular monthly income, making financial management all the more important.
"Make a list of exactly how much you owe and plan to start reducing your debt," the expert added.
"Most people will leave university owing a five figure sum, but be sensible about it. It doesn't all have to be paid off within 12 months, but then again you can't ignore it and you should look to start making repayments as soon as you can afford to."
Interestingly, Mr Slade said that people should not feel pressure to pay off their student loan immediately, even if this forms the largest single amount of borrowing.
"The interest rate is low (in line with inflation), and the whole idea behind these products is that you make repayments from your salary over your working life," he concluded.
