The real answer here is to obtain a loan from a credit union or your bank or whatever to pay off the soon to be 17.8% interest debt. Then you should pay off your current bike, meaning whatever loan you get to cover the HSBC debt. Then, when you have paid off your current bike, you should start thinking about trading up to a new model year, and even then only if you have credit card debt, student loan debt, etc. under control. Of course, that is the least appealing answer as it means no new bike and lots of hard work to pay for the one you already have, right?

That is the real danger with debt. You get to play with something now that you still have to pay for later. So you get sick of playing with the thing and are ready for the next thing before you are done paying for the first thing. If you move on before you catch up in payments, like you want to do with the bike trade, you soon find yourself burried under a mountain of debt with nothing to show for it. How happy are you going to be two or three years from now still paying off that '07 bike you barely even remember?