Dealing With Debt As A Medical Student

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The high fees associated with attending medical school can often prove to be the biggest hurdle for many students who wish to pursue medicine. Recent studies have shown that almost all students graduate on the back of considerable debt. If you are a student and you have any kind of debt during your education or after, here are a few tips for dealing with it without getting further into debt.

Create a budget – Make a plan

The first step to money management is knowing how much you need to spend. Sit down at the beginning of the month and make a list of all the monthly expenses that are unavoidable. This would include your rent, tuition fee, food and utilities such electricity and telephone bills. Along with that make another list of other likely expenditures. Once you have a more concrete idea of how much you need for essential monthly expenses, you can then figure out how much extra money you will have for the month how much you can use to save or pay off your loan. Don’t forget to keep a reserve amount for emergencies.

Surgery in Tanzania Pay off as much of the loan as you can as early as possible

Don’t look at only paying the minimum amount required so you can spend the excess money you have on other non-essential items. If you find that you have extra money in hand, put it towards paying off the loan as quickly as possible. Paying the loan back in bigger instalments will help you free yourself from this debt sooner rather than later and who does not want to do that?

Keep an eye on your account balance

Always keep a check on how much money is going out from your account. Certain banks give you apps that help you to keep track of all the money that is coming and going out of your account on a regular basis. This will help you make all necessary payments on time and avoid any kind of overdue fees.

Get your priorities in place

Everyone has different goals. Your goal may be to reach a certain level financially or it may be to get somewhere professionally. Whether your goals are financial or professional, prioritise and use your money wisely so that you can achieve your most important goals first while still staying on top of your financial obligations.

Arrange your debt

Try not to get into a position where you have taken loans from a number of different places so that you keep paying off different people. Instead, you should consider borrowing one large sum of money from one place and pay off all the smaller debts with that money. Even though borrowing to pay off debt is not always suggested, in this case you will be able to get a lower rate of interest on the larger sum of money. It is however not advisable to use your credit card to make this work.

Work it off

Just because you’re a student does not mean that you cannot earn a little bit of extra money. Look for jobs on campus or internships that are related to your field of study. Not only will you gain experience and add to your CV but you can also make some money by working part time. This money will boost your monthly income and help you repay your loan more quickly.

Following these few tips can go long way in helping you manage your finances so you can achieve your goals without getting into unmanageable debt.

The high fees associated with attending medical school can often prove to be the biggest hurdle for many students who wish to pursue medicine. Recent studies have shown that almost all students graduate on the back of considerable debt. If you are a student and you have any kind of debt during your education or after, here are a few tips for dealing with it without getting further into debt.

Create a budget – Make a plan

The first step to money management is knowing how much you need to spend. Sit down at the beginning of the month and make a list of all the monthly expenses that are unavoidable. This would include your rent, tuition fee, food and utilities such electricity and telephone bills. Along with that make another list of other likely expenditures. Once you have a more concrete idea of how much you need for essential monthly expenses, you can then figure out how much extra money you will have for the month how much you can use to save or pay off your loan. Don’t forget to keep a reserve amount for emergencies.

Pay off as much of the loan as you can as early as possible

Don’t look at only paying the minimum amount required so you can spend the excess money you have on other non-essential items. If you find that you have extra money in hand, put it towards paying off the loan as quickly as possible. Paying the loan back in bigger instalments will help you free yourself from this debt sooner rather than later and who does not want to do that?

Keep an eye on your account balance

Always keep a check on how much money is going out from your account. Certain banks give you apps that help you to keep track of all the money that is coming and going out of your account on a regular basis. This will help you make all necessary payments on time and avoid any kind of overdue fees.

Get your priorities in place

Everyone has different goals. Your goal may be to reach a certain level financially or it may be to get somewhere professionally. Whether your goals are financial or professional, prioritise and use your money wisely so that you can achieve your most important goals first while still staying on top of your financial obligations.

Arrange your debt

Try not to get into a position where you have taken loans from a number of different places so that you keep paying off different people. Instead, you should consider borrowing one large sum of money from one place and pay off all the smaller debts with that money. Even though borrowing to pay off debt is not always suggested, in this case you will be able to get a lower rate of interest on the larger sum of money. It is however not advisable to use your credit card to make this work.

Work it off

Just because you’re a student does not mean that you cannot earn a little bit of extra money. Look for jobs on campus or internships that are related to your field of study. Not only will you gain experience and add to your CV but you can also make some money by working part time. This money will boost your monthly income and help you repay your loan more quickly.

Following these few tips can go long way in helping you manage your finances so you can achieve your goals without getting into unmanageable debt.

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