Barclays has announced trials of a new credit card that will encourage customers to pay off their balances quicker using interest rate incentives.
The product, called ‘Repayment Rewards’, will offer a lower rate of interest to customers who pay off a greater amount of their outstanding balance each month.
Barclays has already tested a credit card with a loan facility called Barclaycard Combinations, also designed to help customers manage their debt. This second credit card has been devised after further consultations with customers.
Keith Coulter, managing director of UK consumer cards and loans said: “Credit ñ used sensibly ñ can help us manage our finances and live the way we want to.
“Repayment Rewards is about finding new ways to help customers while encouraging a responsible approach to their borrowing.”
Barclay’s products come at a time when escalating consumer debt is a national problem and the banking industry has come under fire for not doing enough to help people borrow sensibly.
The Citizen’s Advice Bureau complaint to the Office of Fair Trading about the payment protection insurance often sold with credit agreements criticised the financial industry for bad practices adding to the debt burden on consumers.
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