Paying off my debts as a junior doctor

• The salary is currently based on a 40-hour working week plus additional amounts for more intense posts with anti-social hours (e.g. A&E). This additional pay can increase a basic salary of £21,862 by 20% to 80%, depending on the post, with 50% a common banding. 
• See the related web link for current average salaries for doctors. 
• Remember that pay scales can change between now and when you graduate. For example, changes could occur with the introduction of the European Working Time Directive maximum 48-hour working week in 2009
• Don’t forget that the salaries given are gross (e.g. before Income Tax, National Insurance and employee Pension contribution are deducted) so your net salary will be less. Student Loan repayments are also automatically deducted from your salary.

How much are the Student Loan repayments?

• Since April 2005, repayments are set at 9% of any income over £15,000. On a salary of £35,465 you repay £1842 a year
• You can make optional extra repayments to repay your Student Loans faster
• If your income drops below £15,000 (e.g. you might spend time overseas doing voluntary work or take time out to have a family) you don’t make any repayments
• How long will it take to repay your loans? Check the related website link

Graduate overdrafts and graduate loans

• To repay your student overdraft, most graduate accounts offer an interest-free overdraft ‘loan’ for up to 3 years after graduation (this is NOT a graduate loan)
• Graduate loans are not interest free and don’t always offer the best interest rates. If you do need to borrow, www.moneysavingexpert.com gives details of the cheapest personal loans currently available
• Beware of expensive personal loan protection insurance - it will add significantly to the total cost of a loan. Resist the bank’s pressure to sign up and shop around online for cheaper loan protection insurance.

How to sort out a debt repayment plan

• Work out a budget of your income and outgoings. If you have any spare money left over, you should aim to pay off loans with the highest rate of interest first (e.g. credit cards, bank loans and graduate overdrafts take priority over Student Loans)
• Some graduates find a meeting with the Bank Manager helpful for financial planning
• Set up direct debits for credit card and other loan repayments as well as household bills to save you time (and late payment charges) as a busy junior doctor.

What other costs will I have after I qualify?

• Graduation itself can be expensive, once you’ve factored in the cost of tickets, gown hire, photographs and celebrations
• Professional indemnity insurance is a must, even for NHS doctors. It covers you for ‘Good Samaritan’ acts as well as any private or voluntary work you undertake. The medical defence organisations also offer advice to doctors. Costs vary depending on your specialty and level of responsibility. Junior doctors pay around £150 a year
  Medical Defence Union: 020 7202 1500 
  Medical Protection Society: 020 7637 0541
  Medical & Dental Defence Union of Scotland: 0141 221 5858
• General Medical Council (GMC) registration is a requirement for all doctors practising in the UK. Current annual fees range from £100 for provisional registration to £290
• BMA membership with BMJ subscription included costs from around £90
• Critical Illness and Income Protection insurance offer income if you’re not able to work. Most insurance companies offer some form of cover. See the 'Expert Witness' section on the support4doctors website (underneath 'Related Links' to your right) for more information on the pros and cons of these two types of insurance          
• Medical equipment e.g otoscope / opththalmascope and more books

And a bit later in your career…

• Postgraduate exams are another essential for career progression. To complete all necessary parts (without re-sits or preparation courses) will cost £1000 - £2000
  MRCP
  MRCGP
  MRCS
• Membership of professional bodies e.g. Royal Colleges costs between £200 - 500 a year

(See related web links for relevant websites)