Reading the answers I get a funny feeling - like I just ate some sour grapes.
Here in the UK at least, you will not get an interview without a degree - except with some oddball firm, or someone looking for cheap labour.
Of course the degree does not mean you can do the job but you can't get the job without the degree. The same applies when it comes to certification, be it MS, Cisco, ITIL or whatever; if you've got it on your CV then you'll get the interview before someone with umpteen years hand-on experience. (and a few years ago it cost me £1000 to find out just how useless an MSP can be - those exams must be unfailable :xbones: )
Higher degrees are invaluable - when they are targeted. Don't do one in IT subjects if you have already got an IT first degree and several years experience: do an MBA in banking and finance if that is where you want to work, or manufacturing, or healthcare, or whatever industry you want to carve your career in. If you want to specialise in a technical function like data wharehousing, or networking then do a higher degree in Maths, or Statistics, etc.
Whatever you do, tbobker, don't listen to anyone who tells you degrees don't matter. Even if the degree is not relevant to the job, to an employer it proves that you are of a certain level of intelligence, can finish what you started, manage your own time and work to deadlines, etc.