As the numbers of university applicants increases each year, so the levels of student debt across the country also see rises.

The average student now leaves higher education with debts of more than £10,000, and these figures are predicted to rise, with some graduates facing the prospect of over £30,000 worth of debt in future.

Having worked hard for three years to earn degrees, students leave university with debts which can include:

• Student loans
• Credit cards
• Overdrafts

Many students now have to fund their day-to-day living using credit cards and additional student loans. Whilst the promise of some much needed cash towards living expenses, but credit card limits for students are usually low and involve the same amount of interest as for regular cardholders.

Many big banks will now offer interest-free overdraft facilities on student accounts, which may seem tempting at first, but can be difficult to repay if finances aren't planned right.

And with the graduate job market fluctuating from year to year, students are facing the prospect of living with debt for several years. Well paid jobs may not become available for a number of years following graduation, despite figures showing that they could perhaps earn higher than average in such positions.

It's worth noting that the interest-free periods on overdrafts, which helped during time at university, will expire after a certain period of time after graduation, and should you go over your limit you'll find yourself stung by daily interest charges, along with unauthorised overdraft fees.

Despite the loans repayment process lasting for a number of years after graduation, with an amount being taken out of each pay packet, the levels of debt faced by students can still be considerable.

As a result of the rising levels of debt and uncertain job markets, students face the prospect of difficulties in applications for secured loans and mortgages in the future.

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