Don't ignore debt - manage it
The average debt for fifth year dental students(excluding those with no debt) is £25,545, and in 2010, 15% of all fifth year dental students had debts over £30,000*. Of course, having debt is inevitable for most people who go to university - it's not the debt that's necessarily the problem, but how you manage it.
The five years spent at dental school prepare you for your future but they don't prepare you for managing your money in your first few years as a dentist,when you will have increased travel and accommodation costs, as well as professional costs such as registration with the General Dental Council (GDC) and studying for Continuing Professional Development (CPD).
Tip 1: Know your budget
One of the first steps you can take to reduce your debt is to budget your money. Sometimes just writing down what you spend can help you identify where you can make savings. This could include:
- Credit cards and overdraft repayments
- Rent or mortgage plus household bills such as electric and water
- Mobile phone, satellite TV and broadband bills
- Travel costs including fuel and insurance
- Gym and society memberships
- Meals, cinema and nights out
Working out the difference between your income and what you spend will allow you to create a realistic weekly budget. That way you won't run out of money unexpectedly and it will you help create a saving plan for repaying your debts.
Tip 2: Reassess the luxuries
We all love to spend money but sometimes cutting back on little luxuries can make a difference.
Are the five trips to Costa Coffee really necessary when you can take your own flask to work? Based on a £2.10 coffee that's £10.50 a week and £546 a year!
Do you need to buy a new album? Instead of buying a new album why not listen to your music on Spotify for free or alternatively use comparison sites to get the best deal such as
best-cd-price.co.uk.
Tip 3: Use discounts where possible
There are many websites you can sign up to that will keep you up to date with regular discounts for eating out, days out and so on. Some useful sites are:
Tip 4: Be careful with credit cards
Credit cards and store cards can seem like an easy way to help pay for those things you can't afford at the time.
The problem with these is the monthly repayments. If you can't keep on top of them, you may be charged a high rate of interest on what you owe. If you do decide to get a credit card, it's important that you look around for the best deals. You should aim to pay off the maximum each month and set up a direct debit to ensure that however much you repay, you don't get charged additional amounts for missing repayments.
Support from Wesleyan Medical Sickness
Life as a Foundation Dentist can be extremely busy which leaves little time for planning your finances. This is where Wesleyan Medical Sickness can help - your local Financial Consultant can review your situation and give specialist advice to help control your debts and get your finances on track. Click the link to arrange a no-obligation appointment.
*Source: British Dental Association Student Debt Survey, August 2010