Wednesday, June 1, 2011

Transition Period is hard

Well here I am, a fresh Doctor of 1 week, and we are in a bind. Because I am not in school anymore, I am unable to get anymore student loans and since I have so many loans because of school, my credit report is affected. As a result, time to scrounge up some cash!!!!

There are things that we have been doing to reduce payments but still. It is very anxiety ridden to not be able to tap into funds. I feel like I have to go out and find a part time job, but then I remember that I already have a job and I just have to wait for it to start. Once I start the residency then I know that I will be earning a paycheck again and things will start to get better. But still, it can make some one go nuts.

So now the question is, what can I do? Rather, what can my family and I do? Well, we still have our reserves (which will only last for so much longer). I will learn to love Spaghetti but not meatballs, and will look for free things to do with the kids. The park is a great place. One thing that I did do, was get a bike rack from Craigslist for a much lower price than I would have if it were new. And because of that, I can take the kids to the park and they can bring their bike while I bring the cooler with food from home, as well as water from home. That way, there is nothing to buy.

And while I know that this period is only so long, it reminds me that I was able to weather the economic downturn at school only for so long. And with the reports coming in that the economy is still not doing well, it is time to think about the long term again. Keep reducing the balance on the credit cards, think about refinancing the mortgage, etc. This brings me a very important point: No matter how much you want to, no matter how much you think it is the right thing to do: DO NOT USE YOUR CREDIT CARDS WHILE YOU ARE IN SCHOOL UNLESS ABSOLUTELY NECESSARY!!!

Remember, you will have to pay that back plus interest. And unless you feel that you have no other choice, the best thing is that Cash is King and a debit card it preferred. Even though you fell the pinch right away, you will not have to worry about paying it off later. I mean it is not like the cash was yours anyway because you already gave it to the credit card company once you signed the agreement and you have the interest to pay as well. So even though it is hard, do not use the cards.

1 comment:

  1. Yeah I feel you on the cc debt - it really sucks. I'm planning on a lifestyle downgrade so that I can start med school without cc debt (I have enough education debt as it is!). Good luck weathering this- I'm sure you'll figure it out.