I could use some assistance

[togetoutoftheratrace]

New member but have been reading the blog for a few weeks now and enjoy the writing and overall optimism that is shared. fantastic!
I am a recently graduated dentist (almost 3 years out of school) and the financial debt that I have as a result of going into a profession that I thought would benefit myself and my family (wife and two kids) has become a huge debt burden. Any advice on how to get my debt just over 500k under control? I just applied for a consolidation loan because I am currently making about 10 payments to different lenders. I have a great job but need to figure out how to get out of debt so I can get a loan to start my own practice. I ma slowly implementing things I am learning on here which is great but it feels like I am in so deep. I could use some advice on simple steps to cut costs so I can make  loans payments taking 1/3 of my income.

[palvar]

If you post your budget and your debts/interest rates we can try and help you out.

[nofool]

Yes, we need a little more information in order to be as helpful to you as possible.

Also, FWIW, hang in there; it gets better! Once you start making progress toward paying down your debt, you'll get fired up in no time! This forum is very helpful and encouraging, so spend some time here if you feel trapped or stuck. Welcome! :)

[Karl]

You may want to check on opportunities for loan repayment and forgiveness.  A number of Federal health-related positions may make some payments for you.  You could check on National Health Service Corps and the Indiana Health Service as initial possibilities.  I seem to remember hearing numbers in the range of $30/year.

[togetoutoftheratrace]

i have several grad plus loans with an interest rate of 8% and other Stafford loans at 6.8. they use a weighted average when consolidation which is probably common knowledge around this website. the consolidation rate comes out to 6.86% with one payment. I guess my main reason for writing this question is to not only get some advice on these loans but how to get started getting out of the rat race. i feel trapped by these loans. I have checked the federal programs and I would have needed to sign up for those while in school and at this point I would not make enough to pay my loans if I was to sign up now. very frustrating.

thanks for the willingness to reply I appreciate the feedback so far

[frugalcalan]

It's definitely not an easy profession to get into.  My sister wants to be an oral surgeon, and as she said to me after she toured the dental school, "everyone here is so pretty.  You have to be both beautiful and rich to become an orthodontist/oral surgeon."

We still need more information.  What's your income?  What are you expenses?  Does your partner work?  What are the EXACT loan amounts?  What's the breakdown of your expenses?

I don't know what kind of advice you are looking for, but it's hard to give it without knowing more about your situation.

[togetoutoftheratrace]

when i get home from work today I can get real specific on rates and such

[trammatic]

We need more than rates...post your income and budget.

[Forcus]

Just asking an honest question - does it really cost $500k to become a dentist. That is crazy money!

[sibamor]

Also take the time to organize it.  Some people just start throwing numbers into the box and other users use scratch pads to reorganize it.  Think it out, people like it when the numbers look pretty.

INCOME   Monthly   Yearly
Pay
   
Pre Tax   $   
Post Tax $      


Expenses:
Category
   subcategory
   subcategory

Here's a helpful templete
HOUSING
   MORTG: PRINCIP/INT
   HOME INSURANCE
   PROPERTY TAXES
   CABLE
   ELECTRIC / NG/WATER
   PHONES
   TRASH
   
AUTO
   GAS
   CAR INSURANCE
   MAINTENANCE
   VEHICLE REG/TAXES
   
SAVING
   General Saving
   Purchase Savings
DEBT   
   Loan 1 Payment Amount
        Loan 2 Payment Amount
   
FOOD   
  GROCERIES
   ACTIVITIES
   BOOZE
   
HHOLD   
     CLOTHING
   HOME FURNISHING
   GIFTS
        HEALTH INSURANCE
        HOBBIES
   MISCELLANEOUS
        ETC

ASSETS:
   RETIREMENT ACCOUNT
   SAVINGS
   PROPERTY (CARS/HOMES)

LIABILITIES
   MORTGATE (BALANCE, RATE, WHERE IN TERM) ~REPEAT PAYMENT AMOUNT
   LOAN 1 (TYPE, BALANCE, RATE) ~PAYMENT AMOUNT
   LOAN 2 (TYPE, BALANCE, RATE) ~ PAYMENT AMOUNT

Include any of your current lifestyle/near term goals. (debt free, minimize expenses, future house sales, moves, etc). Reorganize template as needed, please just group similar expenses.
   

[togetoutoftheratrace]

THANKS FOR THE REPLIES. I APPRECIATE IT. i WILL GIVE YOU A VERY ORGANIZED LIST. i HAVE IT ALL ON A SPREADSHEET AT HOME AND YES UNFORTUNATELY IT COSTS WAY TOO MUCH TO GET A HIGHER EDUCATION THESE DAYS. THEY LOCK YOU IN WITH A TUITION AND THEN RAISE THE TUITION 20% EVERY YEAR. THE COST OF HIGHER EDUCATION IS OUT OF CONTROL AND I DO BELIEVE THE STUDENT LOAN CRISIS IS THE NEXT BIG CRISIS TO HIT THE ECONOMY. MORE STUDENT LOAN DEBT THAN CREDIT CARD DEBT IN THE US. I HAVE NO CREDIT CARD DEBT AND PLAN TO HAVE BOTH CARS PAID OFF ASAP.
ILL BE HONEST. I HOPE THAT ONCE I POST MY INCOME EVERYONE DOESNT THINK I'M A DUMB ASS. I MAKE MORE THAN MOST. OVER THE LAST 6 MONTHS I HAVE PAID 66K IN TAXES AND PAID OFF LAST YEARS TAXES. ALSO I PAID OFF 35K IN CREDIT CARD DEBT RACKED UP WHILE IN SCHOOL SINCE MAY AND SPLURGED ON A TOTAL ANTI MOUSTACIAN VACATION TO KAUAI AS I HAVE NOT GONE ON VACATION IN 10 YEARS. I'M COMING TO ALL OF YOU FOR HELP TO GET MY LIFE UNDER CONTROL WITH HOPEFULLY WELL THOUGHT OUT ADVICE. I OFTEN FEEL THERE IS A MISCONCEPTION SHARED IN SOCIETY THAT IF ONE IS A DOCTOR/DENTIST...YOU SHOULD BE FINANCIALLY OK BECAUSE OF YOUR INCOME BUT MY DEBT TO INCOME RATIO IS JUST AS BAD OR WORSE THAN MOST OF THE DENTAL ASSISTANTS I WORK WITH.

[starbuck]

holy caps lock Batman!

[togetoutoftheratrace]

SORRY. I am asked to take medical notes in caps and didn't pay attention. No I'm not yelling :-)

[KingCoin]

I could use some advice on simple steps to cut costs so I can make  loans payments taking 1/3 of my income.

You seem primarily concerned with cutting expenses. It's worth asking, have you read every one of MMM's blog posts? There are posts that address precisely how to dramatically cut expenses in nearly every major spending category, from groceries, to cars, to utilities, to children. I'm sure people are willing to give advice for the specifics of your situation, but there's no reason to hash through what's already been very eloquently said.

[togetoutoftheratrace]

I could use some advice on simple steps to cut costs so I can make  loans payments taking 1/3 of my income.

You seem primarily concerned with cutting expenses. It's worth asking, have you read every one of MMM's blog posts? There are posts that address precisely how to dramatically cut expenses in nearly every major spending category, from groceries, to cars, to utilities, to children. I'm sure people are willing to give advice for the specifics of your situation, but there's no reason to hash through what's already been very eloquently said.

King Coin,
Good point. I have read some posts but was looking to try and speed up the process. Rather than being lazy I will read all of them and then if need be ask a question or two.

[grantmeaname]

You can certainly speed up the process by posting your expenses. We won't be offended if you haven't read them all, and they won't all be relevant to you, so feel free to post a spending breakdown so we can zero in on the biggest opportunities for savings.

[Jack]

Although I realize you've already done it, I'm not a fan of consolidating student loans these days (at least not Federal ones) because the interest rates don't decrease, they just get averaged together (weighted average).

If you keep them separate, you maintain the flexibility of either preferentially paying off the highest rate ones first or paying off the lowest balance ones first ("snowballing" in Dave Ramsey-speak), which results in either less interest paid or better cash flow over time.

[Hoy]

I am also a dentist with a lot of debt. I graduated in 2010 and went to a very expensive private school in California. I practice in the CA Bay Area and I really recommend you look into a ten year graduated repayment if it works financially in your situation. I graduated with around $379k of student loan debt. I  currently paying around $4300 a month for another 8.5 years or so. It is very expensive to go into this profession! PM me if you have any questions.  I still have around $20k of revolving debt outstanding that will be paid in around 8 years. I definitely have not been very mustachian in the past, but after making some money, it have come to realize I have purchased so much shit I don't really need, and I truly feel that we can waste an absolute fortune over a lifetime from consuming unnecessary "things". I just want to introduce myself and if anyone needs a dentist in the Bay Area, contact me.

[happy]

There are quite a few high paid professionals on this board. Yes everyone thinks you are rich, and there's a high expectation to "act rich", which leads to dumbass decisions. Whatever you've spent before, I guarantee there will be someone here who's done it before as well (probably me).

Most folks here support the concept of "no shame, no guilt" with regards to past decisions, BUT taking full responsibility for future ones.

Any "face punches" you get here are meant to shock/surprise you into rethinking your hidden assumptions about consumption....not meant to shame you or imply you are a bad/useless dumbass.

If you are game , post your numbers and I'm sure it will be helpful: the forum loves a set of numbers to play with. Or, read MMMs posts and the forum posts and apply it to your life in private. Both work.

You said

I have read some posts but was looking to try and speed up the process. Rather than being lazy I will read all of them and then if need be ask a question or two.

You may not have meant it this way, but 500k debt won't be a few quick fixes. You will need to really understand, absorb and commit to the mindset. Posting your numbers will allow experienced members to find areas for improvement fast, but ultimately its personal preference about what you are willing and able to give up, and what you are willing to re-learn about what makes you happy. BTW having "done" MMM for a year, its fun! (as well as rewarding.)

[fidgiegirl]

I echo happy.  No one will be judging you for the amount you make.  Go for it!

[TomTX]

I guess the high pay/high school debt is "delayed wealth" - you spend the first 5-10 years paying off school debt, then start accumulating wealth rapidly (if you don't get sucked into rampant consumerism/designerism)