What compounding really costs.
Cheez interest never compounds. Informal lenders commonly charge 30% to 50% a month, and unpaid interest grows interest of its own. Pick an amount and watch what each month of not being able to settle does to the two debts.
If you borrowed and could not settle
After six months the difference is R5,643.04
Both lines assume nothing is repaid until the end, which is when compounding hurts most. The Cheez line uses our standard pricing inside the National Credit Act caps; your real agreement has fixed monthly amounts and your quote shows your exact numbers. The informal line uses 40% a month, a typical informal rate.