Money Makeover: Recent graduate with various debts

February 19th, 2006

The Independent features a wealth check for a recent graduate who has a £15,000 student loan to pay off, as well as credit card debts and an overdraft.

He currently earns £22,000 per year, and has no savings and no pensions provision. The advice from the experts is to prioritise the order in which he pays off his debts, starting with the most expensive. The student loan only charges interest at the rate of inflation, and if he can find a 0% deal to move his credit card debt to, then his overdraft will be left as the priority.

It is suggested that once his overdraft is sorted, her should then consider investing in a cash ISA. There are also suggestions for cutting his monthly outgoings.

Categories: Money Makeover