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Barclaycard Flexi-Rate Encourages Cardholders to Repay More


Figures released today show that Barclaycard Flexi-Rate ( ) customers are repaying credit card balances more quickly – reducing the time taken to repay and the amount of interest they pay.

Flexi-Rate™ was launched in October 2005 and Barclaycard ( ) has analysed repayment behaviour over the past seven months. The figures show that, compared to a standard card, half as many customers are habitually making only the minimum payment. What’s more, the proportion of customers choosing to repay more than the minimum each month has risen by 10 per cent.

Changing repayment behaviour saves money, for example, a customer borrowing £1,000 on a credit card (15.9% APR) and repaying just the minimum each month would take 21 years and three months to repay and pay £1,400 in interest. The same £1,000 borrowed on Flexi-Rate™ and re-paid at 10% per month would take 4 years and 6 months and cost £110 in interest, a saving of £1,290.

Barclaycard Flexi-Rate™ charges a lower interest rate to those customers who pay off a higher proportion of their balance. Customers who pay more than 10% of their monthly balance are charged an interest rate of 9.9%, those who pay more than 5% are charged 12.9%. Customers who opt to pay less than 5% (minimum 2%) are charged 16.9%.

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.’

To further encourage customers to repay more than the minimum, Barclaycard will be introducing a new statement message from May this year. Cardholders who have only made the minimum payment in the previous six months will see the following message on their statements:

‘We’ve noticed recently you’re only paying the minimum amount; this will increase the time to clear your balance and cost you more in interest. If you wish to discuss your payment, please call Customer Services’.

For further information about Barclaycard Flexi-Rate™ please contact the Barclaycard Press Office on 01604 251229.
Barclaycard Flexi-Rate™ credit card information ( )

About Barclaycard

Barclaycard is a multi-brand international credit card and consumer lending business; it is one of the leading card businesses in Europe.
In the UK, Barclaycard manages the Barclaycard branded credit cards and other non-Barclaycard branded card portfolios including Monument, SkyCard and Solution Personal Finance. In consumer lending, Barclaycard manages both secured and unsecured loan portfolios, through Barclays branded loans, being mostly Barclayloan, and also through the FirstPlus and Clydesdale Financial Services businesses.
Outside the UK, Barclaycard provides credit cards in the United States through Barclaycard US, Germany, Spain, Greece, Italy, Portugal, Scandinavia and across Africa.
Barclaycard Business processes card payments for retailers and issues purchasing and credit cards to business customers.
Key Facts
Number of Barclaycard UK customers 11.2m
Number of retailer relationships 93,000
International cards in issue 4.3m

Contact Details:
Andrew Bond
Barclaycard Press Office
01604 251229


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