(in Canada)
I'm about to graduate this year and will start making money in my residency training. The huge debt load is because I have supported my family using my medical school loans, as it was a necessity.
My next step is residency - I'll be making about $50,000/year with very low taxes due to tuition credits. My salary increases by $5000/year until I am done residency (minimum 2 years, max 5 years of training).
Then I start working as a physician. This is what the average physician makes in Canada per province and per specialty: http://ift.tt/2rWCRAq.
Let's assume I'll be a family physician and I'm not picky about the province I live in, that works out to ~$250-300,000 (BEFORE taxes, overheard and licensing fees).
I will have about $275,000 on bank loan (at 2.45% interest) and $40,000 of student loans (~5% interest). The bank loan I need to pay my monthly interest payment while in residency, but no payments are required on the principle until at least one year after I'm in practice - this is about $600/month. The student loan is about $400/month for interest and principle on a 10 year period. I do have the possibility of placing the student loan on my parents LOC and paying only the interest instead of the actual payments - they can't afford to help more than this unfortunately. This would be about 3% interest.
My question - I am freaking out at my debt. I am living as frugally as possible these days and trying to be smart about money, but the amount of debt I have is making me lose sleep and panic. How will I survive residency with this debt load? And how long will it take to pay this off when I start work?
I think I just need to have some form of plan but as I am financially illiterate (from a poor family who never taught me the skills I needed to know how to handle money) I don't even know where to start!
Any help?
Submitted June 21, 2017 at 04:47PM by debt_Debbie http://ift.tt/2srBj4S
