Ripe for refinancing: It's not just for mortgages anymore

Physicians can save substantially by refinancing personal loans and also cut overhead costs by doing the same with business loans.

By Mike Norbut, AMNews staff. June 2/9, 2003.

It's hard to open a newspaper or turn on a radio these days without learning about the refinancing opportunities made available by the lowest interest rates in 40 years. While your focus may be on trimming your mortgage or car payments, consultants say you shouldn't overlook your business loans during the refinancing revolution.

With attractive offers available across the board, financial advisers say it's wise for physicians to look at every loan -- whether they cover education costs, x-ray equipment or a boat -- to make sure they're not spending money needlessly.

"Surprisingly -- and this probably applies to most physicians -- we forget about the business loans," said John Dulemba, MD, a gynecologist in Denton, Texas, about 35 miles north of Dallas. "By the time you get to work, you're worried about your patients, and you probably have someone else paying your bills."

Physicians may be struggling to preserve profit margins, but depending on your situation, refinancing could be a hassle-free way to trim hundreds of dollars a month off your overhead costs, said consultants and financial advisers.

Consolidating also is an option, especially with regard to student loans. For example, Sallie Mae, which offers student loans and is one of the 60 largest U.S. companies based on assets, offers consolidation alternatives for people who have federally guaranteed loans.

"With the way reimbursements are, [physicians] are paying somewhat closer attention, but probably not as close as they should," said Donald J. McAnelly, a principal with the health care management division of The Rehmann Group, a Saginaw, Mich.-based firm. "They presume things are on autopilot."