Best Loan for Short Term Low Debt

debt_collector

Hi everyone. I have a credit card debt of £4000. I do overpay each month, however, I am interested in taking out a loan for the whole amount and paying it off in 18months. I currently pay £200 p/m. I am willing to take out a loan and pay up to £250p/m in order to pay it off in 18mts or less. Any suggestions or should I stick to my card???

rsykes2000

Another loan = another credit check. Is this a good idea in whatever financial situation you're in ? If it is and you can find a loan then go for it, but rates tend to be high on small amounts (ie under 5K or so). Personally (and depending on the CC interest rate) I think I would simply overpay the CC and get it cleared asap.

grumbler

For such small amount it is worth considering switching the debt to some card with low Life Of Balance interest rate (that can be as low as 4.9%).
See:
Cut Price Plastic Personal Loan article (Long term cheap debt)

The Best Balance Transfers: cut the cost of existing credit card debts > BEST BUYS: Easy Route, a one off move for permanently low rates

http://www.stoozing.com/0fees.htm (the bottom part of the list)