Halifax launch new low-rate credit card designed to help clear debt

Posted by Tom Blandford in Personal Finance on 10 January 2017 - Tom is a Credit Analyst at checkmyfile

Halifax have recently announced the launch of Flexicard, a low-rate card targeted at those with high amounts of debt. It allows consumers to set up larger regular payments towards existing balances and easily work out how long they will need to make payments to clear a balance. The interest rate is also relatively low at 6.4% APR.

The cheapest and most efficient way to utilise credit cards will always be to pay it off in full each month, however it is all too easy to allow a balance to pile up, especially after Christmas when spending is usually exceptionally high. Use of balance transfer cards can also be a cheap way to clear debt, as long as it is significantly reduced during the promotional period offered for the card.

Minimum payments, while small, can take years to reduce even a relatively low balance. For example, paying off 3% each month for a £2,000 balance would take 16 years to clear the balance entirely assuming a typical APR. It is even worse to consider that the average UK household has around £7,000 of debt, or £3,765 per UK adult (Excluding mortgages) so it would take even longer to clear the balance in full.

The Money Charity found that the average consumer would take 25 years and 6 months to clear their credit card debt, assuming only minimum payments were made towards the average credit card balance of £2,452. This is because the minimum payment would decrease (from £58 in this instance) towards its lower limit as the balance decreases, whereas setting up repeated monthly payments of the initial minimum payment of £58 would clear the same balance in 5 years and 4 months.

The online instalment plan feature supported by this card allows cardholders to set up regular, larger repayments to reduce their balances. Although this is entirely possible for other credit cards by making payments manually - this feature cuts out unnecessary hassle and streamlines the process, making it more difficult for a balance to spiral out of control and allows you to monitor your progress towards clearing a balance easily online.

Check Your Multi-Agency Credit Report

30 Day Free Trial

How does APR work? – Your questions answered

APR stands for Annual Percentage Rate and is a standard measure that allows you to compare the total cost of credit from different lenders.

Published on 30 Aug 2019 by Andrew Brown

Full Article

Check your Multi Agency Credit Report before the PPI deadline

The PPI deadline is at 11.59pm on Thursday 29 August. After this point, you can no longer submit applications to reclaim any PPI you are owed from lenders. If you’ve not done it, the time is now to check whether you are owed money. If you start your PPI application before the deadline, it’s still possible to reclaim what you’re owed.

Published on 28 Aug 2019 by Andrew Brown

Full Article

How interest rates are calculated

If you’ve ever applied for a form of credit, you may well have discovered to your cost that the advertised APR and the interest rate you’re offered if you are accepted can be very different things.

Published on 14 Jun 2019 by Richard Catlin

Full Article

The Importance of Proving Stability to Lenders

In addition to the key roles that your Credit History and Affordability play in determining whether or not you will be accepted for credit, we regularly talk about the importance of being able to demonstrate your ‘stability’ to potential lenders.

Published on 15 Mar 2019 by Sophie Regester

Full Article

If I Change My Name Can I Still Get Credit?

Legally changing your name is an increasingly popular thing to do in the UK: while getting married or divorced still makes up a large proportion of this, there is a growing trend towards people changing their name following civil partnerships, a change in gender, living in blended families, or simply because they’re seeking a change – the list is long.

Published on 22 Feb 2019 by Tom Magor

Full Article

Which Credit Report Information Can Landlords See

These days whenever you rent a property you may be required to pass checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to reliably make rent payments to the property on time.

Published on 7 Feb 2019 by Kevin Pearce

Full Article

What Credit Checks Look For When You Switch Energy

As we get deeper into Winter, it’s inevitable that millions of consumers across the UK will end up using more energy and spending more on bills due to the colder weather and long stretches of darkness.

Published on 9 Jan 2019 by Jamie Mackenzie Smith

Full Article

Pros and cons of going paperless

Whether you are environmentally motivated or simply to get a discount for moving your billing online, you might find it makes sense to abandon paper for your business, if you haven’t already.

Published on 7 Dec 2018 by Kevin Pearce

Full Article

How To Get The Best Car Finance Deals

New car sales may have slowed in recent years, with the economy, emissions scandals and Millennials all being cited as the root cause at one point or another. But the number of people choosing to use credit as a means of driving away in a new car continues to rise, according to figures from the Finance & Leasing Association which shows that the new car finance market grew by 15% in July 2018 when compared to the previous year.

Published on 8 Oct 2018 by Kiah Phillips

Full Article

We're Now More Likely To Be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, car finance, and mortgages – than they are collectively depositing into savings accounts.

Published on 5 Oct 2018 by Sam Griffin

Full Article


We are rated number 1 for customer service on