38k GBP gross and over 100k GBP debts is a horrible situation, especially if you consider that you are basically bound to one employer and he only gives you a contract where he has all the rights and you have all the duties.
That can be rephrased as *you* carry all the risk, and another party carries the return.
The risk/return tradeoff is the balance between the desire for the lowest possible risk and the highest possible return. This is demonstrated graphically in the chart below. A higher standard deviation means a higher risk and higher possible return.
A common misconception is that higher risk equals greater return. The risk/return tradeoff tells us that the higher risk gives us the
possibility of higher returns. There are no guarantees.
Just as risk means higher potential returns, it also means higher potential losses.
Certain carriers are turning this on it head to benefit their own profit margins by reducing operational overheads, with the pilot carrying
high risk for low return on investment. Conversely for the carrier in terms of investment it is
low risk, high return.