Balloon Payment
Usage Examples
"Bongani's car loan from Absa had a 30% balloon payment. His monthly was R3,500, but in 60 months there'd be a R90,000 balloon due. He planned to trade the car in for a newer model and roll the balloon into a new loan. But the car value dropped, and he couldn't cover the balloon. Hectic."
"Nomsa financed her bakkie with a balloon. R2,500 a month looked affordable. But after 48 months, a R45,000 balloon came due. She didn't have it. The lender extended the loan and added interest — now she's paying even more. Balloons are sneaky."
"Andile avoided balloons. He paid his full car payment every month and finished with nothing due. More monthly, but no surprises. His mate who took a balloon payment is still dealing with debt four years later. Andile won."