Basically that means that each month interest is charged on the new balance. For example if you start with $100 and a 3% interest rate, after the first month you would be charged $3. This brings your total balance to $103.
The following month you will be charged 3% of $103, and so on, each month until your case settles. Once we know exactly what you’re approved for we can give you a month by month breakdown of payback figures that you will be able to review before you have made any decisions.