Dr. Zwade Marshall and Dr. Kenton Allen were invited to join KevinMD, social media’s leading physician voice, in a discussion about how loans for doctors work and why a program designed by fellow doctors is likely the best solution to consider. In this thorough discussion with Kevin Pho, MD, our team highlights the best things to consider when physicians are borrowing money:

  • the immediate and future impact on cash flow
  • the total cost of the money borrowed over the entire term of the loan
  • the degree of flexibility built into the terms of the product

Total Cost of Capital is More Important Than the Interest Rates on a Loan

Whether you’re evaluating your upcoming cash needs or looking for a payoff loan, there are more important factors than just looking at the offered rate! For instance, deceptive marketers may share low introductory rates to catch your eye. Only later do you realize that the average loan rate over time cost you way more money. A slightly higher (but consistent) loan rate may have ultimately saved you thousands.

In these situations, THE MATH MATTERS!

Loans for doctors should be structured to meet your unique financial situation regardless of where you are in your career. A true understanding of the ‘cost of capital’ is ultimately more important than the rate itself.

Cost of Capital = the amount you will end up paying over the course of your loan)

Since Doc2Doc understands what your true career trajectory looks like – whether you’re helping families every single day, performing transformative surgeries or helping make people feel their best – our proprietary algorithm allows us to find an overall cost structure that will keep you from paying more than you would anywhere else!

How Personal Loans for Doctors Can Improve Financial Outlook

The right loan product should enable doctors to

  • improve their cash flow,
  • improve their credit score
  • and ultimately cost the least amount of money possible to make sure you keep more money in your pocket.

For instance, doctors that use personal loans to consolidate and reduce high-interest credit card debt will see:

  • a reduction in average monthly interest fees – which can improve your personal cash flow
  • a reduction in revolving credit – which can help your credit score
  • and a reduction in the total amount that doctor would have paid to the credit card company over time – which keeps more money in his/her pocket

These simple example shows the power that a personal loan for physicians can have in your long-term financial planning!

Check out the interview with KevinMD here. As always, let us know if you’d like help reducing your monthly interest payments and improving your credit score.