YOUR POWER TO CHOOSE

First, know the options…
You have the full amount in physical cash, or in your bank account. You can afford the full amount.
Lay-by is a payment method where you pay in instalments for the item for up to six months. The retailers still keep the item until the full amount is paid after which you become the owner. You may cancel the agreement at any time with a minor penalty. (Terms for Lay-bys are in Section 62 of Consumer Protection Act)
You receive the item(s) and agree to pay off the purchase with interest over a chosen period of months, depending on the store. You will pay the money back to the store.
A credit card is linked to a credit account with your bank. When you use the card, you’re borrowing money directly from your bank and the bank pays the store. You will then pay back to the bank each month with interest.
A business loan is an amount of money you can borrow from a bank to use for a variety of company purposes. The money you borrow must be repaid over time with interest and sometimes fees.
A personal loan is an amount of money you can borrow from a bank to use for a variety of purposes. The money you borrow must be repaid over time with interest and sometimes fees.
You are given the full loan amount by the lender and make repayments on the main amount and any interest that has been added. These loans can be applied for with 3rd party vendors.

If a new couch retails at
R12 999.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R12 999.99
Lay-By
Interest Payback: R0
Final Payment:
R12 999.99
store account
Interest Payback: R3 249.75
Final Payment (over 12 months):
R16 347.50
Credit Card
Interest Payback: R3 249.75
Final Payment (over 12 months):
R16 347.50
Micro Loan
Interest Payback: R3 249.75
Final Payment (over 12 months):
R16 347.50
Personal Loan
Interest Payback: R3 249.75
Final Payment (over 12 months):
R16 347.50

If a new smartphone retails at
R2 899.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R2 899.99
Lay-By
Interest Payback: R0
Final Payment:
R2 899.99
store account
Interest Payback: R724.75
Final Payment (over 12 months):
R3 646.74
Credit Card
Interest Payback: R724.75
Final Payment (over 12 months):
R3 646.74
Micro Loan
Interest Payback: R724.75
Final Payment (over 12 months):
R3 646.74
Personal Loan
Interest Payback: R724.75
Final Payment (over 12 months):
R3 646.74

If a new Stove retails at
R2 999.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R2 999.99
Lay-By
Interest Payback: R0
Final Payment:
R2 999.99
store account
Interest Payback: R749.75
Final Payment (over 12 months):
R3 772.49
Credit Card
Interest Payback: R749.75
Final Payment (over 12 months):
R3 772.49
Micro Loan
Interest Payback: R749.75
Final Payment (over 12 months):
R3 772.49
Personal Loan
Interest Payback: R749.5
Final Payment (over 12 months):
R3 772.49

If a Used Vehicle retails at
R139 999.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R139 999.99
Car Finance
Interest Payback: R25 199.82
Final Payment (over 12 months):
R176 050.00
Balloon Payment
Interest Payback: R22 399.84
Final Payment (over 12 months):
R176 050.00
Personal Loan
Interest Payback: R34 999.75
Final Payment (over 12 months):
R176 050.00

If a new laptop retails at
R5 999.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R5 999.99
Lay-By
Interest Payback: R0
Final Payment:
R5 999.99
store account
Interest Payback: R1 499.75
Final Payment (over 12 months):
R7 544.99
Credit Card
Interest Payback: R1 499.75
Final Payment (over 12 months):
R7 544.99
Micro Loan
Interest Payback: R1 499.75
Final Payment (over 12 months):
R7 544.99
Personal Loan
Interest Payback: R1 499.75
Final Payment (over 12 months):
R7 544.99

If a new TV retails at
R9 999.99
It COULD cost:
CASH
Interest: 0%
Interest Payback: R0
Final Payment:
R9 999.99
Lay-By
Interest Payback: R0
Final Payment:
R9 999.99
store account
Interest Payback: R2 499.75
Final Payment (over 12 months):
R12 574.99
Credit Card
Interest Payback: R2 499.75
Final Payment (over 12 months):
R12 574.99
Micro Loan
Interest Payback: R2 499.75
Final Payment (over 12 months):
R12 574.99
Personal Loan
Interest Payback: R2 499.75
Final Payment (over 12 months):
R12 574.99
Glossary
Repo Rate
Repurchase rate: Rate at which the private (sector) banks borrow rands from the SA Reserve Bank.
Interest Rate
The portion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Interest Payback
In an interest-only repayment plan, borrowers pay back only the interest that accrues on their loan every month. This is unlike standard repayment plans. Monthly payments are used to cover a part of both, interest as well as the principal debt.
Balloon Payment
Balloon payment is the lump sum payment which is attached to a loan, mortgage, or a commercial loan. This payment is usually made towards the end of the loan period. Balloon payment is higher than what you might be paying towards the loan on a monthly basis.