Barclaycard – New Ideas

If you are a current Barclaycard holder you may be about to receive a piece of information regarding a new idea that Barclaycard are wanting to use some of their customers as Guinea Pigs.

The new credit card will put together the normal idea of a credit card, which can also be used to make loans; it has been given the moniker of “Barclaycard Combinations” and will hopefully help you pay your debts quicker and the payments that you make will be directed to the higher of the debts that you have, to save you money in the long run.

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The way that Barclaycard hope that it is going to work is by giving the customer a favourable APR of 9.9%, to spend on purchases and services as usual, but in a twist to the normal way a credit card works, you can then transfer the balance that you owe into what is being called a loan “pot” that will introduce the balance to a new lower rate of 6.9%, that can be used with an option of paying it back with a fixed repayment until the debt is paid off, just like a personal loan, this can be done in 3 separate times of the year.

Once you have done this, the credit card will have to be met with at least the minimum payment of 3% and the loan repayment will also have to be paid at the end of the month. If you wish to pay more than the 3% minimum payment, then that will go towards paying off the credit card debt that carries the higher interest rate.

Another plus that this brings to it, is the fact that you cant use up the credit on your card switch it to the loan facility and then run up the debt on the card again. Also you will not be charged any sort of penalties if you decide to pay off the debt more quickly.

There are some downsides.....

The down side to this new type of card is that Barclaycard have already got existing deals on offer that will give a rate of 5.7% on personal loans and have one of the longest 0% deals on the market right now, that will give you a 0% period until March next year, though these are to entice new customers

A better idea will maybe to balance transfer your account to one of the 0% interest deals, to pay of your debt, but make sure you don’t spend on the card.