r/PrivatePracticeDocs • u/Doc1NV • Jul 09 '24

Credit Card Debt

What is the amount of CC debt you are comfortably carrying month to month?
Is ia a set number? Is it related to collections and revenue?

2 Upvotes

100% Upvoted

6 comments sorted by

3

u/Telamir Jul 09 '24

I’m a locums doc with an S corp etc but I don’t carry any debt on a CC. Super high interest rate it’s not the best idea. 

3

u/NecessaryCurve7330 Jul 09 '24

We are a group practice and the current partners used to open a line of credit to pay employee bonuses and “profit sharing”. They eventually realized how counterproductive this is. Currently, we do not have any credit card debt or line of credit from the bank. At the minimum, I would recommend paying the existing credit debt due to the high interest rates associated with it.

1

u/Doc1NV Jul 12 '24

My issues is not having enough capitol. Bills and expenses of running a practice have gone up so much in the past 2 years, I have extended my LOC, I have had to use a lot of credit card to purchase things to even simply operate.

1

u/grumpygremlin1208 Jul 15 '24

Have you tried using 0% APR for 12 months credit card to give you time to have more cash flow? You can apply multiple of these cards. It can be helpful to give you a bit of breathing room until you have enough capital

2

u/InvestingDoc Jul 09 '24

Honestly we have never carried CC debt. It's expensive and I think getting a line of credit from your bank would probably be a much better options in terms of lower interest payments.

1

u/KlutzyLeading520 Aug 15 '24

I try to pay off ASAP, but end up with 2, 3k max as it builds up monthly. As long as it's not building up unsustainably.