What that rate really is.
Lenders quote rates in whatever unit sounds smallest. "Just 5% a week" sounds gentle. Turn any rate into what it does to a debt over a full year, compounding, and quotes stop hiding.
Rate translator
| Over a year, compounding, that is | 0% |
|---|---|
| R1,000 owed becomes, in a year | R1,000.00 |
This is what happens when the debt is not settled and the rate keeps applying to the growing total. Cheez interest never compounds, which is why our rate means what it says.