Check whether each charge changes with the balance, term or rate. A quoted payment is useful only if you understand what can alter it.
What to check
- The rate clause
- fee schedule and repayment timetable
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
Assuming every quoted monthly amount remains unchanged for the full term.
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?
Check whether each charge changes with the balance, term or rate. A quoted payment is useful only if you understand what can alter it.
Which information do I need for this decision?
The rate clause, fee schedule and repayment timetable.
Which mistake should I avoid here?
Assuming every quoted monthly amount remains unchanged for the full term.
How do I check the rate clause?
Locate the actual dated record for The rate clause. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check fee schedule and repayment timetable?
Locate the actual dated record for fee schedule and repayment timetable. 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.
