Graduates who are struggling to pay off their student loans as well as other debts have been advised to consider settling the most urgent one first.

A credit card debt takes precedence over student loans and student should focus on paying it off, suggested chief executive of moneynet.co.uk, Richard Brown.

His advice comes as it was recently revealed by Student Loans Company that it paid out more than £3.9 billion to students between 2007 and 2008, showing an increase of 32 per cent.

And a study found that at least £17 worth of credit was granted without a proper investigation of applicants’ proof of income and out-goings.

Although Mr Brown reminded students not to completely abandon the source of finance that helped in paying for their studies through the university, he nonetheless urged them to give more attention to more pressing debts.

“Some people graduate with substantial student debt but it is a fact of life unfortunately, whereas carrying big wads of debts on a high interest credit card isn’t,” he explained.