TOPIC 5 - THE BENEFITS OF BORROWING 5.1

TOPIC 5 - THE BENEFITS OF BORROWING 5.1

1. Someone who is short of money at the end of the month can use their overdraft/credit card for purchases until they get their next salary.

2. Few people are able to buy a house without taking out a mortgage loan which they will pay back over years.

   • Once it is all paid back the house will be owned by that person as they have fully paid for it.
   • Taking a mortgage loan out on a house can work out cheaper or similar to the amount they would have to pay monthly or altogether on a house the same size that they were renting

3. Allows people to buy things they want now that are too expensive to be funded by their income.

4. Help out people who may take too long to save for something they need immediately or very soon.