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 flat line is an illustration of interest that never compounds, the way Cheez holds it; any real agreement has fixed amounts and a quote with your exact numbers. The informal line uses 40% a month, a typical informal rate.