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New credit card versus loan?

Here is my story:
I needed £4000, and went to HSBC for a loan. THey said that for that quantity interest was 15.9% APR. If I went up to £7000, 7.9% APR. I then got a quote for £7000 that automatically had another £960 insurance on it. £7960 total. They insisted heavily for me to take the insurance. I did not want to be borrowing £8k to cover a £4k debt.

I found then a better solution. I took out a credit card with Virgin Money with 15 months 0% on balance transfer (2.98% commission). I transferred the £4000 I needed and I will only pay in April 2009, £4120.

Much better, huh?:T
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