9 June 2006
Barclaycard ahs revealed that customers of one of its credit cards are repaying their balances more quickly, reducing the amount of interest they have to pay.
The company looked at the repayment data from it new Flexi-Rate card, which it launched in October of last year.
It found that half as many customers were repaying the minimum amount when compared to customers of a standard card. Around 10% more customers were repaying more than the minimum amount since the card's launch, Barclaycard said.
The card offers a lower interest rate to customers paying off more than the minimum repayment.
James Le Brocq, head of Barclaycard UK Credit Cards, said: "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."
Barclaycard will also be introducing a new statement message to cardholders who have only made the minimum payment in the previous six months, encouraging them to pay more each month to lessen the total interest they will pay.
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