Should I use a personal loan or a balance transfer card to pay off debt?

Balance transfer card math: Typical cards offer 0% APR for 15-21 months with a 3%-5% transfer fee. On $5,000 of debt, that is $150-$250 in fees upfront, then zero interest if paid off in time. If you can pay about $270/month, you are done before the promo expires.

Personal loan math: On the same $5,000 at 12% APR for 36 months, you pay about $166/month and about $975 in total interest. More than the balance transfer fee, but you have 3 years to pay it off - not 15-21 months.

Balance transfer wins when: (1) You can reliably pay off the full balance within the promo period. (2) The transfer fee is lower than the personal loan's origination fee plus interest. (3) Your credit score qualifies you for a good transfer offer (usually 700+).

Personal loan wins when: (1) The debt is too large to pay off in 15-21 months. (2) You have tried balance transfers before and rolled the balance when the promo expired. (3) Your credit score is 650-699 - you might get a personal loan but not a 0% balance transfer card. (4) You want the psychological discipline of a fixed payoff date.

The trap to avoid: Rolling a balance transfer to a new card when the 0% period expires, while only paying minimums. This is how people stay in debt for years.

Hybrid approach: Use a balance transfer card for the amount you can pay off in the promo period, and a personal loan for the remainder.