Keep 2.9% credit card balance or switch to fixed loan at 6.9??

I have about $25,000 in credit card debt which is currently only at 2.9%. I've received an offer for a loan to pay this off in 6 years at 6.9%. Which is the better deal?

Is it better to take the higher rate and have it all paid off in 6 years or is it better to stay at 2.9%??

Please advise.

It depends:

1) Is the 2.9% a teaser rate that will increase after a short period?

2) Do you need the discipline that fixed fixed-term loan payments will force upon you? That is, I assume the 6.9% loan has amortized monthly P&I payments that you must meet unlike a credit card which typically has ridiculously minimal required monthly payments.

One solution, if the 2.9% rate is long-term and if you have self-discipline, would be to keep the 2.99% credit card but make monthly payments on it of $425 as if it were a 6-year/6.9% loan. If you do this, destroy or lock the card away so you don't make things worse!

Good luck!

If you want to pay this loan off in 6 years you only need to make payments of $379.73 per month at the 2.99% interest rate. To do the same thing at 6.99% interest rate your payments would have to be 426.11. You do the math! If you can afford to pay $426.11 per month to pay this loan off you can certainly afford the $379.73. Even if this rate (2.99%) expires you should keep making payments till it runs out and then look at getting another loan, or switch it over to another credit card with the same (or lower) interest. Just for the record I'd also like to point out that you'll save $3,339.01 (2.99% = $2,340.56 in interest/6.99% = $5,679 .57 in interest) in interest during that 6 year period by keeping that lower interest rate. Hope this helps!