Go it a loan?

By THIS IS MONEY
Updated:

 

I HAVE a credit card debt of £8,000 on a balance transfer rate of 4.9% fixed for life. I pay this off regularly every month at £230. Would I be better taking out a loan for £8,000 at around £230-ish per month? I cannot work out which way I will pay less interest. AW. Wigan.

Lee Robertson, independent financial adviser at Investment Quorum, says: It is likely that most personal loans will carry an interest rate of between 8% and 15%. This appears substantially higher than your balance transfer interest rate of 4.9% for life. There are some current interest rates of 0% available from Egg, Capital One and RBS Advanta for balance transfers.

These last for six months or so and would enable you to clear down your debts much quicker.

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