Research by the University of Warwick found that 60 per cent of people would pay off their balance more quickly with the new card which charges a lower interest rate to those customers who pay off a larger proportion of their outstanding balance every month.

A spokesperson for Barclaycard said: “Interest rates are only ever half the story – the speed at which you repay will always have a huge bearing on the cost of credit.

“Flexi-Rate puts the consumer back in control and planning for the long term rather than putting off a decision to tackle their debt.”

Customers who clear more than ten per cent of their balance will be charged at an equal interest rate of almost ten per cent while those who pay a minimum of 2.5 per cent will be charged 16.9 per cent.

Those paying off between 5.05 per cent and 9.99 per cent will be charged 12.9 per cent interest.

Recent research has revealed that those who only pay off the minimum balance every month could be losing hundreds of pounds and actually increase their debt, instead of alleviate it.

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