If an expense returns every month, a loan can add another payment without removing the shortfall. Look for the cause before funding the next cycle.
What to check
- Three months of income
- essential spending and existing debt payments
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
Using a new loan to hide an ongoing gap in the household budget.
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?
If an expense returns every month, a loan can add another payment without removing the shortfall. Look for the cause before funding the next cycle.
Which information do I need for this decision?
Three months of income, essential spending and existing debt payments.
Which mistake should I avoid here?
Using a new loan to hide an ongoing gap in the household budget.
How do I check three months of income?
Locate the actual dated record for Three months of income. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check essential spending and existing debt payments?
Locate the actual dated record for essential spending and existing debt payments. 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.
