i have a loan with nationwide which I topped up over the years and the outstanding balance to settle in full is £6,726 . I got rid of PPI and my fixed repayment is £208.34 a month. I have to pay this up to 6 years to settle by then the year will be 2013 by that time I would have paid more than I owe due to interest which would make it £15,048.00. which is bludey ridiculous.

I want to pay off the loan quick within 2 years. I looked at a various loans on compare websites and if I borrowed £7000 for 24 months (2 years) to pay off the loan then I'd only have to pay an extra £112 per month on top of what I'm paying now so total repayment would be £7,695.36. excluding PPI and Insurance cover. A friend had advised me to get a virgin credit card balance transfer at 0% interest 15 months but not sure about this as read a few reviews on Virgin Card and customers were not happy with the service as some had said that you get charged high fees if money is paid late into account and they change days when to withdraw the money, so not sure about this.

SO I was wondering whether I should get another loan to pay this balance of £6,726 in 2 years as I can afford to pay more per month than the current loan I have. or opt for credit card 0% interest at 15 months.

Any comments would be appreciated.

Thankyou

If your credit rating is good one suggestion is to try the Egg card currently 0% interest free transfers that accept loans, overdrafts store cards etc until June 2010 (3% fee) subject to acceptance for a high enough limit.

This would offer up to 14 months to repay at a flexible rate as much as you can afford without being tied to any fixed amount, unlike another loan. You could get this balance vastly reduced before any interest falls due, then transfer any uncleared smaller balance onto a different card at that time....and become a card tart. !

Caution - If you do this, do not make any other purchases on this card (keep it just with this initial balance transfer on) or ever miss making at least the minimum monthly repayment on time (breach of conditions means return to normal interest rate), otherwise you could fall into the interest rate trap. !

http://www.egg.com/visitor/0,,3_84106--View_1763,00.html