Greater graduate debt may affect credit files

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IFAs need to tell their clients to keep an eye on their credit files in light of the escalating problem of student debt, as it could affect their ability to borrow money until well into their 30s.

Richard Brown, chief executive of Moneynet, says large student debts will cause problems when arranging a mortgage or anything else requiring a sound credit history because they will take longer to pay off. “IFAs will need to re-address the financial landscape," says Brown. "Their traditional client base will have less money during their twenties and early thirties 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 pro...

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