Graduates who go on to study a Masters may be better off using the money for travelling.

This Is Money reports recruitment experts and employers say it has become more difficult for candidates to differentiate themselves, and postgraduate qualifications are unlikely to help.

The number of 2:1 graduates now means academic quality is a given, while too many graduates have turned to a Masters degree for them to add value to CVs.

Martin Thomas, head of recruitment at BT, told This Is Money: "If I was advising a graduate deciding whether to do a masters degree or go travelling, I'd tell them to go travelling.

"A masters will get them in more debt and I can honestly say I would not automatically recruit someone with a masters over and above another candidate with the same first degree."

A postgraduate qualification is also unlikely to increase pay, according to Phillip Lane of Citybased marketing recruiter Penna Barkers.

He told This Is Money: "Most employers do not pay a premium for a masters, so graduates won't get a return on their investment".