The new product, Repayment Rewards, is set to be widely available by the end of the year.

Managing director of UK Consumer Cards and Loans, Kevin Coulter, said: “Credit – used sensibly – 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.”

Barclays is launching another new product in March next year designed to help customers manage repayments.

Barclaycard Combinations will allow customers who have built up large balances on their credit cards to transfer the amount into a loan facility with a lower interest rate and set repayment terms.

Credit card lending slumped last month as consumer spending on the high street dropped, according to the British Bankers Association.

The association also reported ‘consumer caution in relation to borrowing’ after the number of people getting into credit card debt rose sharply at the beginning of the year.

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