Balance Transfer vs Personal Loan for Debt

Should you use a 0% balance transfer card or a personal loan to pay off debt? Compare both options to find the best choice.

Balance Transfer Card

Pros

0% APR for 12-21 months
No interest during promo period
Keep credit card flexibility
Quick approval process

Cons

Balance transfer fee (3-5%)
High APR after promo ends
Requires good credit
Credit limit may be low
Temptation to spend more

Best For:

People who can pay off debt within the 0% promo period

Personal Loan

4.3

Pros

Fixed rate for entire term
Structured payoff plan
No temptation to respend
Higher borrowing limits
Available for fair credit

Cons

Interest from day one
May have origination fees
Less flexible than card
Hard credit inquiry

Best For:

People who need structure and can't pay off debt in 12-21 months

Our Verdict

Use a balance transfer if you can realistically pay off your debt during the 0% period. Use a personal loan if you need more time or want a fixed payment plan.

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