Latest Debt News
New credit card aims to help avoid debt
20/10/2005 15:02:00
Barclaycard have released a new credit card that it claims will help consumers avoid getting in to unmanageable debt.
The Barclaycard Flexi-Rate card rewards customers who pay off a higher proportion of their balance each month with a lower interest rate.
In a statement the lender cited research carried out by the University of Warwick that suggests that 60 per cent of people would pay more off their balance more quickly with the new type of card.
The most popular additional payment amount was £50 to £100 per month.
Professor Henry Stott from the University of Warwick, said: "For some customers – particularly those that revolve a balance - Flexi-Rate would be a much better option than, for example, zero per cent offers where customers automatically pay higher rates following the offer period.
"That's because people say they would start changing their behaviour by paying back more each month. This change in behaviour will give them a more sustainable, long-term attitude to managing debt."
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