Barclaycard says its customers can repay their balances quicker through its Flexi-Rate scheme.
The new credit card scheme charges lower rates of interest to its customers who pay off higher proportions of their balance.
Those who pay off more then ten per cent are rewarded with a 9.9 per cent interest charge on their outstanding repayments.
James Le Brocq, head of Barclaycard UK credit cards, commented: "Flexi-Rate is doing exactly what it was designed to do – that is, encouraging people to pay back borrowing sensibly."
"Increasing the amount you pay back each month can dramatically reduce both interest costs and the time it takes to repay," he added.
There are currently around £1 trillion worth of unpaid debts on credit cards, loans and overdrafts in the UK.
New figures from National Savings &Investments suggests that this figure is rising by about £1 million every four minutes of the day.
Barclaycard says its credit card customers pay balances quicker
Barclaycard says its credit card customers pay balances quicker
Fri, 09 Jun 2006
Recommended links
Barclays to protect online banking customersSurvey shows online banking users confident with their finances
Banks could help with overdraft problems, says banking expert
Todays top credit card deals
Get a Barclaycard
| Banking news |
|---|
| Korean Bank to Withdraw from Lehman Brother Takeover Talks - Wed, 27 Aug 2008 |
| ICBC Becomes World's Most Profitable Bank - Fri, 22 Aug 2008 |
| Royal Bank of Scotland May Not Need to Sell Insurance Unit - Tue, 19 Aug 2008 |
| More News |
