Credit card debt help

The bank’s Flexi-Rate card charges lower interest to consumers who pay off more of their outstanding balance each month in a move which could help many clear debt.

In addition to paying a lower interest rate on outstanding balances, the move should encourage people to clear debt sooner.

Amer Sajed, managing director at Barclaycard UK Cards, said: “We are delighted that Flexi-Rate is continuing to change the way cardholders manage their borrowing. It is clear from our findings that using a card in this way has a positive effect on borrowing costs.

“By opting to manage their debt more responsibly, customers are rewarded by paying less interest and having the time taken to clear their balance reduced.”

Starting with an APR of 14.5 per cent, customers who pay ten per cent of their outstanding credit card debt each month will have their rate reduced to 9.9 per cent.