Tag: debt

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External Moonlighting In Private Practice: Tread Carefully!

external moonlighting

It’s exciting to collect that first paycheck which can be an order of magnitude higher than your residency salary when you first start as a fully trained radiologist. But, many of you may want to make even more at the beginning. It’s not uncommon to have debt loads that would make regular folks cringe. Nevertheless, some private practices discourage external moonlighting to make that extra money when starting. Why do some businesses work this way? And, what do you do if you want to continue working at your first practice but are not happy about this policy? Let us muddle through some of the issues that you may face when you want to make some extra dough when starting.

Why Do Some Practices Discourage External Moonlighting?

External Allegiances

Moonlighting outside the realm of your main job could create loyalties external to the practice. Let’s say you sign a contract to work during a vacation at an external site, but the primary imaging business also could use your help. This dichotomy of purpose can create a conflict of interest since you will support another practice instead of your primary allegiance. Furthermore, perhaps that other job can be more enticing than the one that does not allow moonlighting. Radiology practices fear having employees change jobs. It is very costly and causes the other practice members to have to take up the slack.

Practices Want To Encourage Their Own Internal Moonlighting

Sometimes the work can get busy. Maybe, it’s a new MRI that opened up. Or, perhaps a senior partner recently retired. In either case, there are many times that practices need all hands on deck to cover the rotations with the extra work. Why would a business allow external moonlighting when it may have many opportunities of its own? The practice needs to cover this extra work!

Exhaustion/Burnout/Vacation

Some practices are more lifestyle-oriented and encourage their radiologists to take their vacations. Burnout is an actual entity. And, we all need a break once in a while. Working all the time on your vacation time can be a recipe for burnout. The exhaustion of the partners and employees is a very costly situation. Why not go to the extra lengths to discourage burnout by forbidding doing external work outside the practice?

I Like The Practice But How Can I Deal With Strong Policies Discouraging External Moonlighting?

Ask For Internal Moonlighting Gigs

Some practices don’t advertise moonlighting opportunities that they have available. So, instead of assuming that your primary radiology practice has nothing available, just ask around. Sometimes senior partners would rather have time off rather than the extra money. Other times, work needs to get done that is making the days longer and more stressful. Both situations often occur. And although not advertised many times, they are potential extra ways to earn some extra dough. Sometimes all you need to do is ask!

Have Them Make An Exception

Sometimes rules are made to be broken. Practice by-laws are in place for the average situation for the average employee or partner. But, who is to say that you are average? If you provide a compelling reason for the business to make an exception to the external moonlighting policy, sometimes they will. Some practices may be more liberal for non-partners or partners. If need be, check with the chair and find out if it is possible.

Work Only During Vacations Or Out Of State

Suppose the practice is concerned that you won’t be dedicating your full attention to your primary job as an external moonlighter. Or, your main radiology job is worried that you will be competing locally with your primary radiology practice. Then let the radiology practice know that your external work will not interfere with either. Guaranteeing that you will only work out-of-state or on vacations may convince the partnership to allow a bit of extra work to make some more cash.

External Moonlighting: The Unwritten Rules

When you look at external moonlighting policies from a birds-eye view, it can make a lot of sense for a practice. It can protect the business from losing their employees and partners, ensuring that work does not go uncovered, and preventing burnout and exhaustion. But there are ways to deal with these issues and get the extra work that you want. So, instead of folding your hand, ask around and make sure to let your practice know that you are interested in moonlighting from the get-go. You may get the extra work you want without destroying your primary job!

 

 

 

 

 

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Should A Resident Physician Apply For A Credit Card When Already In Significant Debt?

credit card

Credit is a very touchy subject with resident physicians in all specialties. And it makes sense. Student debt seems to be increasing exponentially over the years. When I graduated, I thought I had a lot of debt from student loans. But that number pales compared to the debt that most current medical residents hold. Confirming this suspicion, I did a miniature survey of almost 100 medical students at my hospital. Student debt sums were as high as 600,000 dollars. These medical students had not yet completed their four years of training. So, the amounts were going to be higher than that. These sums of money are not insignificant. Instead, the debt will be life-altering for many of these future physicians for years. On top of that, add a high-balance credit card, and you may head toward financial ruin!

This enormous debt burden brings me to the next question. Does it make sense for a resident to apply for a credit card after accruing so much debt? This question came up in the past year with a resident who had not started to get credit in his name. It caused all sorts of issues for him at the time they needed it. And it will probably continue to cause problems for years to come until he establishes a good credit record. So, the simple answer is yes. But in this post, I will explain why setting up a few credit card accounts makes sense even with significant debt. And I will briefly discuss how residents should establish credit.

Why Do Resident Physicians Need A Credit Card?

Laying out Money

A radiology resident often must lay out a significant amount of funds for travel or a large purchase such as a car. What do you do if you do not have a credit card or do not have a credit card with enough credit? Nowadays, most travel is booked online with credit cards. For many websites, the only form of payment is a credit card. You are now stuck with either relying on others to book your flight or not going on the flight. Once you reach a resident’s level, these issues arise often.

Establishing a Track Record For Large Future Expenses (Mortgages, Car Loans, Etc.)

To purchase large items such as a house or a car without cash (and most residents don’t have lots of money on hand!!!), you need to obtain a mortgage or a loan. How will some company provide you with a loan if you do not have a long track record of making payments? Sure, you have your student loan as some background. But that is not enough. You must also have at least one revolving credit account (a credit card) to increase your credit score to obtain these large loans. A credit card is an excellent way of establishing this background.

Cash Back Credit Card

Finally, many credit cards offer incentives in the form of airplane miles, gifts, and cash. Cash has the most value out of any of these rewards. When you make a purchase, you can get a certain amount refunded on every purchase. Some cards give you 5% on specific items or 2% on all items you purchase. So, it really can add up over time. If you use credit wisely, it can pay back dividends!

How To Establish Credit Without Breaking The Bank

If you have a poor or no credit history, finding a good credit card company willing to give you a credit card can be challenging. Even with these issues, there are several ways to establish credit. You can apply for cards backed by your savings or find cards with very low maximum balances. Either of these sorts of cards will allow you to occasionally use the card to make small purchases such that you can begin to establish a credit history. And remember to use personal credit hygiene: Pay your balances off monthly and try to use a small percentage of the credit allotted. These small steps will allow you to establish a good history without spending too much.

Summary

Even though resident physicians already have vast amounts of debt, establishing a credit card account becomes very important from both a practicality and utility standpoint. You can do it in a way that does not cause additional debt burdens or hardship. Bottom line: Establish credit now rather than later when you need the credit!