Students face a future of debt

Debt-ridden students could find it harder to borrow money until well into their 30s, according to Moneynet.

Large student debts will hinder people wanting to arrange a mortgage or other loans requiring a sound credit history, says Richard Brown, chief executive of Moneynet.

Mr Brown is urging IFAs to "readdress the financial landscape" because their traditional client base will have less money as they approach 30 to put into pensions, investments and savings.

"But, there will always be a market for IFAs, as graduates will still tend to get married, buy a home and have children and therefore need products like life insurance, income protection and mortgages," he added.

The introduction of top-up fees in 2006 will result in most graduates having a minimum debt of £15,000 until well into their 30s, the government confirmed last month.

And high street banks calculate that the average graduate debt for students starting university next year will double by 2009.

Mr Brown advised students to "keep an eye on their credit files to make sure all the information held on them is accurate".

"In addition, it is crucial that students understand the importance of not over-committing themselves as missed payments could mean they have accumulated an adverse credit history even before they embark on a professional career. This could take years to repair," he added.

Click here for Nationwide Loans