I am a credit card holder and I usually receive offers for low interest loans in my mail from banks. Interest rates of these loan offers range from .68% to .99% per month with 2 to 3 year terms. I am almost tempted to avail of these offers to pay off a credit card balance with a regular monthly interest rate of 3.5% per month. At first glance, it seemed like a no-brainer, but is it? When I look at the fine print, I realized that the low interest rate is computed as a percentage of the total loan amount and not on the basis of declining loan balance. The interest amount, therefore, is a fixed monthly amount for the duration of the term. In most cases, the interest for a 2-year loan of this type is just equal to the regular interest that you will incur if you pay the 3.5% interest loan in 6 months. Is it better to take advantage of this offer and be tied to a 2 or 3 year term or just pay the 3.5% per month loan in six months?