Match repayment dates to the expense and the money you can reliably set aside. A payday payment can be much larger than a monthly instalment.
What to check
- Total repayment
- payment dates and the useful life of the purchase
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
Treating the smaller monthly payment as proof of a cheaper loan.
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
Personal loan or payday loan: which structure fits?
Match repayment dates to the expense and the money you can reliably set aside. A payday payment can be much larger than a monthly instalment.
Which information do I need for this decision?
Total repayment, payment dates and the useful life of the purchase.
Which mistake should I avoid here?
Treating the smaller monthly payment as proof of a cheaper loan.
How do I check total repayment?
Locate the actual dated record for Total repayment. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check payment dates and the useful life of the purchase?
Locate the actual dated record for payment dates and the useful life of the purchase. 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.
