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How to Manage Your Medical School Debt

 

credit cardThe debt from medical school can be overwhelming for young doctors but if you are smart about managing it, you can still be financially successful.

Pay Private Loans First

If you took out private loans for medical school, it is important you pay these off as quickly as possible. Federal student loans will qualify for forbearance when you are doing your residency, while most private loans will not.

Consolidate Your Loans

If you took out multiple loans, you will want to consolidate them to save money and stress. The reason is because you can pay a huge chunk of money to all your loans versus putting in lower amounts to multiple loans. It will also help you with paying on time because you only have to do it once.

Borrow Cautiously

If you are looking to borrow money, only get the amount of money you need to live. Once it’s time to pay it back, the interest will be calculated with the original amount and you’ll be happier you didn’t take out more.

Buying Versus Renting

If you are looking for housing, you will definitely want to buy instead of rent. Even though it might seem more expensive, you will profit from buying a house in the long run. With renting, you pay a high amount but in the end, you don’t have anything to show for it. Instead, buying real estate is an investment that you’ll never regret. With the help from the experts at Physicians Mortgage Specialists, we can help you find the best doctor and physician home loans for your needs!

 

Get the dream home you’ve always wanted by filling out the information form on our Homepage. You can expect a call from one of our professional staff in less than 30 minutes!

 

If you have any questions, please give us a call today at (800) 619-2174 or email us at info@physicianmortgagespecialists.com.

Ways to Save Money as a Young Doctor

homeDoctors make a sizable income but when they are first starting out, it can be very difficult to get a grasp on their finances because of their huge medical school debt. For some tips on how to save money as a new doctor, please read on!

Start Paying Student Debt Early

Most young doctors graduate with hundreds of thousands of dollars in debt from medical school. Unfortunately, the debt will grow because a lot of the loans they took out have a 5 to 6 percent interest rate. To avoid increasing the amount of debt you are in, you should start paying off your high interest loans as early as possible. The reason is because even if you try to save money instead, the amount your savings can earn will still cost less than your loans.

Budget Yourself

A lot of young doctors make the mistake of living beyond their means. Instead, you should plan out a budget and focus on minimizing costs. Food, transportation, and housing are usually the biggest costs and so if you are smart about them, you can save yourself a lot of money.

Invest Early and Aggressively

As a new doctor, you do not want to wait to start investing your money. Open up a 401(k) account and start putting in at least 2 percent of your paychecks. Once you get more financially established, you will want to increase the amount of money you invest. Many people make the mistake of not investing money because they think in the short-term. However, once it comes to retire, you will wish you saved more when you were younger. If you want to know how much you should start saving now to accommodate your needs when you’re retired, utilize a retirement calculator.

Consult With a Financial Advisor

It never hurts to turn to the professionals for financial advice. They can assist you with getting yourself on a good track to financial success and also ensure you are protected from potential lawsuits and malpractices.

 

If you are interested in purchasing a home, please trust in the leading physician loan mortgage specialists at Physician Mortgage Specialists!

 

Get the dream home you’ve always wanted by filling out the information form on our Homepage. You can expect a call from one of our professional staff in less than 30 minutes!

 

For more information, please give us a call today at (800) 619-2174 or email us at info@physicianmortgagespecialists.com.