Choose a repayment term that leaves breathing room while recognising that more payment periods can increase cost. Test shorter and longer quotes rather than assuming one is best.
What to check
- Instalments
- fees over the term and expected changes in income
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
A decision to avoid
Choosing the longest term before seeing its total repayment.
A calculation you can check
Illustration only: cash received R2 000; three payments of R750; a separate required charge of R50. Total paid = 3 × R750 + R50 = R2 300. Difference from cash received = R2 300 − R2 000 = R300. This difference is not an annual interest rate. Include the charge only if it is outside the three payments; do not count it twice.
Questions about this decision
What should I check first?
Choose a repayment term that leaves breathing room while recognising that more payment periods can increase cost. Test shorter and longer quotes rather than assuming one is best.
Which information do I need for this decision?
Instalments, fees over the term and expected changes in income.
Which mistake should I avoid here?
Choosing the longest term before seeing its total repayment.
How do I check instalments?
Locate the actual dated record for Instalments. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check fees over the term and expected changes in income?
Locate the actual dated record for fees over the term and expected changes in income. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
What should I do if a required detail is missing?
Mark it as unresolved. Ask for that precise detail before choosing; do not substitute an advertised example for your own document.
What is the next practical step?
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
How can I verify the explanation?
Use the documents listed above. Check quoted amounts and dates in the original record; use the official reference links for the organisation’s guidance.
