This year's graduates are starting out on their own during one of the worst economic slumps in years. Unemployment is climbing, the property market is in freefall and economic uncertainty abounds. To make matters worse, graduates will also be carrying a huge amount of debt. Here, Times Money offers ten steps to help them to find a way back into the black and strengthen their financial position.

1 Pay off expensive debts first

Outstanding balances on credit and store cards require urgent attention over all other debts.

2 Student loan

The interest rate on your loan has been fixed this year at 3.8 per cent, making it the cheapest loan you are ever likely to receive. It will also be deducted by the government automatically when you begin to earn more than £15,000 a year, so don't rush to pay it off.

3 Budgeting

The turmoil in the global financial markets should be a lesson to new graduates, according to Mark Dampier, of Hargreaves Landsdown, the independent financial adviser. “Too much debt will only lead to major heartache,” he says. “Draw out the money you need for the week and if you run out a day or two before the end, don't go out.”

4 Work perks

Larger employers often run schemes that can reduce your transport costs, but they are not always advertised. Owen Roberts, of Callcredit, the credit reference agency, says: “Many employers offer 0 per cent loans for bikes or annual travel cards, with the repayments deducted from your monthly salary.”

5 Shared accommodation

To avoid arguments about household bills, set up standing orders from all housemates into a single account. Ensure that payment dates are a couple of days after payday, so you do not risk going into an overdraft.

6 Go online to save cash

You can furnish your graduate pad for next to nothing by using listings websites such as gumtree.co.uk or swapping networks such as snaffleup.co.uk or freecycle.org. For equipment that you will need only once, such as tools, go to zilok.uk.com or erento.co.uk. To check that you have the cheapest deals for your phone, broadband, TV and utilities, visit simplyswitch.com and moneysupermarket.com.

7 Overdrafts

Banks convert student accounts to graduate accounts automatically in the months after you finish your course. Most give you a year or two to clear your interest-free overdraft before making a monthly charge. However, not all providers are the same, so compare the banks and be prepared to switch.

8 Savings and pensions

It is a good idea to get into the habit of saving a small amount of your salary each month. It is also never too early to consider a pension. Come retirement, money added to your pension pot in your twenties is worth twice as much as money saved while you are in your forties.

9 Loans and mortgages

Graduates are attractive customers for banks, many of which will offer competitive mortgages requiring small deposits and loans with lower interest rates for customers who have recently left university. For example, HSBC offers a graduate mortgage at 6.67 per cent on loans up to £250,000 and will lend up to 95 per cent of a property's value. Graduates can also obtain personal loans with an interest rate of 7.9 per cent.

10 Seek help when you need it

If your debts become unmanageable, seek help as soon as possible. It is better to ask for advice early rather than wait until your debts are out of control. Call the National Debt Line (0808 8084000) or the Consumer Credit Counselling Service (0800 1381111), or visit Citizens Advice.

Enter The Times/Lloyds TSB Graduate of the Year competition at timesonline.co.uk/graduateoftheyear