How can you pay off medical school debt fast? Nitschke Nancarrow is ready to help you slash your student loans and start living the life you’ve been dreaming of.
Most Australian medical school graduates leave uni with an average of about $150,000 in debt.
If you’re a doctor, dentist or some other medical professional burdened with a debt load like that, then you’re keen to make that number shrink.
Here’s some tips that can help you get rid of your debt quickly.
Set up automatic payments
If you haven’t already, make sure your employer is automatically withdrawing the minimum loan repayments from your wage. This is much easier than trusting yourself to put the money aside and do it yourself! This will help you keep you on-track to clearing your debt.
Add extra to each payment
It’s very simple maths that any extra cash you can put towards your loan in a single month will chip away at the deficit. Even if you can’t afford to pay much extra, set a minimum goal you can contribute each month. If you can manage your living expenses, ask your employer to up the automatic loan repayment amount. The larger-than-required payments will add up and you’ll slowly see your medical school debt shrink.
Create a repayment strategy
You’re better off having a plan if you want to seriously chop down your education debts. If you have other loans, make sure you prioritise whichever has the biggest interest rates.
Having said that, it may be easier and more motivating for you to first eliminate your smaller debts completely, just so that you have fewer things to tackle.
Pay out extra cash instead of spending it
Have you stumbled into a small inheritance? Earned a raise? Sold a car?
Don’t put that money towards other material things, tempting though it may be. If you come into a cash windfall, go ahead and put it right towards your medical school debt.
You might think ‘well, I’m doing pretty well at making repayments and my student debt will always be there, so why not indulge myself?’
Because you don’t want your student debt to always be there, that’s why. Surprise cash is fun, but clearing away your debt for good is an even better feeling. You can have fun later on by spending your money on whatever you want …. after your debt is gone.
Live on a budget
Speaking of having fun, you should also think about limiting the amount you spend on dining out, alcohol and recreation, for a time. Living on a budget doesn’t appeal when you’re finally earning a six-figure salary, but it is a guaranteed way to help you pay off medical school debt fast.
Consolidate your debts
Lastly, you might consider consolidating your debts if you’re in a tight spot. Refinancing and consolidation are good ways to reduce your interest rates and simplify your payments. Make sure you seek professional financial advice before going down this route, however, since consolidation can sometimes backfire and leave you with more debt than before.
There is no one solution that works for everyone. You may find that applying two or more of the suggestions given here will help you pay off medical school debt fast.
Talk to the experienced medical accounting Nitschke Nancarrow team, who have spent years helping medical pros keep finances under control and successfully build wealth.
Contact Nitschke Nancarrow managing partner Kym Nitschke for a free initial discussion about your situation. Call us on (08) 8379 9950 or send me an email.
– Kym Nitschke
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.
