C — Consistently cut bad debt
Become a debt-free dentist, then put those payments to work
Debt is the enemy of freedom. The third part of the Rich Dentist System gives you a simple payoff plan and then turns every cleared payment into savings and investments.
Good debt and bad debt
Not all debt is equal. A practice loan that funds a profitable office can be good debt. Credit card balances, expensive car loans and debt for things that lose value are bad debt: they drain cash flow and add stress. The system targets bad debt first.
The snowball method
- List every debt from the smallest balance to the largest.
- Pay the minimum on all of them, and every extra dollar on the smallest.
- When one is paid off, roll its payment into the next one.
Each payoff builds momentum, which is why dentists stick with it.
Student loans
Federal student loans have their own options, including income-driven repayment and Public Service Loan Forgiveness for dentists at qualifying employers. Refinancing can lower the rate but gives up federal protections. We compare the options for your career path before choosing.
From payments to investments
As each debt disappears, the same monthly amount moves into retirement accounts and investments. Your budget barely changes, but your net worth starts to grow faster.
Learn it from Jay in person
Jay teaches this topic to dentists at meetings and study clubs. See the course: Dental Student Debt Solutions.
Frequently asked questions
Should a dentist pay off debt or invest first?
Usually both: keep contributing enough to get any employer match and the tax benefits of your retirement plan, while paying down high-interest bad debt as fast as possible.
Is a practice loan bad debt?
Not necessarily. A practice loan that funds a profitable practice can be good debt. The plan focuses first on debt that does not earn anything back.
What about dental school loans?
Federal loans have options such as income-driven repayment and PSLF. We compare them with refinancing for your situation before you decide.
The rest of the system
Track practice and personal finances
See exactly where the money goes, in the practice and at home, with books that are accurate every month.
Pay the legal minimum in tax
Plan taxes all year with strategies that fit US tax law, instead of finding out what you owe in April.
Build wealth with a plan
Grow wealth steadily, in line with your goals and risk tolerance, with advice you pay for directly.
Put this part of the system to work
Book a free consultation and see what it could mean for your practice.