Dealing with Debt I
Understanding and Managing Debt After Graduation
THE NEXT DDS
Learning Objectives:
After hearing this podcast, the listener should:
- Understand the concept of "Compounding" in relation to debt
- Understand some common misconceptions about debt and how it can affect his/her financial profile
The beginning of your
new professional career will bring a new set of challenges. If you are like
most new dentists, you will graduate with considerable school-related
debt. Dealing with the repayment of that
debt will be, for most new dentists, not only their first career challenge, but
also an ongoing challenge. For many new dentists,
their first professional employment will be that of an associate. While providing an immediate income beyond
the new dentist’s wildest imagination, most associateships have limited earning
capacity. As a dental practice owner,
you will earn three-to-four times the average income of an associate. Subsequently, every new graduate needs to set
his or her sights on ownership as soon as possible. How all debt is handled,
including school debt, between the time of graduation and practice ownership,
is critical if ownership is to become a reality.
For more information about this important topic, be sure to check out "
Dealing with Debt II: What not to do", and "
Dealing with Debt III: What to do" on THE NEXT DDS.
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