Graduate with debts- advise

Phonix

You've pretty much summed it up fluffymuffin, thank you.

I forgot to mention that a graduate loan has an interest rate attached to it, so it's best to keep the interest free overdraft for as long as possible with the option of using the graduate loan in future = ensuring you keep your account nice and active to be eligible for it.

The information about the graduate loan is listed in martins student articles. He made a nice little table.

The thing you must do first is apply for an interest free credit card and hope for a decent limit on it.

Does he have any credit cards that he doesn't use?

badgermonkey

I wouldn't count on his being eligible for the RTL (Repayment of Teachers' Loans) scheme unless he already has a contract signed for next year and is in a shortage subject for secondary teaching. The rules are quite strict.

I wouldn't really be that worried about that amount of debt, as long as he realises it needs paying off at some point. I have an interest-free overdraft being reduced by £500 a year. I keep it up to the limit every month and put any spare money into my saving account - might as well be earning interest on it if they're going to lend it to me for free! I found my first year as a teacher quite tough financially but soon enough I got my CCs paid off and I have enough in my savings to pay off my overdraft any time they ask me to!