ABSTRACT
This chapter discusses how to manage debt effectively. Borrowing is an everyday part of life. Few people can buy a home for cash, so it’s usual to take out a mortgage. Borrowing to invest in a home or any other venture is a risky business, because borrowing magnifies gains but also losses. The trendy way to buy a car is a personal contract plan (PCP). In theory, the monthly payments for a PCP are cheaper than taking out a loan to cover the full price of a car. In addition to pay, jobs come with a range of non-pay add-ons, called benefits in kind, such as a pension scheme, and, in some cases, cheap or free loans and access to savings schemes. There is a place for debt in anyone’s life if it opens up opportunities or improves one's future, and one can afford the repayments.
