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Comparing unlike amounts can produce a false saving
An apparently cheaper offer can provide less usable money or cover a different purchase.
The total becomes meaningful only after the need and amount are aligned.
State the common basis and identify where it cannot be matched. This makes the comparison honest instead of implying a benefit derived from borrowing or receiving a different sum.
Compare secured and unsecured structures
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.