Barclaycard has unveiled a new 25-month zero per cent balance transfer credit card which makes it the longest period in which no interest has to be paid ever.

Barclaycard’s 25-month Platinum Visa card also has a competitive fee of 3.2 per cent which takes it to the top of the best-buy tables.

This means it would cost you £128 to transfer over a debt of £4,000 and you would have just over two years to repay the dent before any interest was incurred.

Balance transfer credit cards are an excellent idea to pay off debt in the most cost effective way because all of the money you repay goes on clearing the balance and as long as you clear the balance by the end of the interest-free period then you don’t pay any interest. The only extra cost is the balance transfer fee.

Barclaycard’s move came in response to Halifax unveiling its new balance transfer card offering which allows new borrowers 24 months to repay their debt and has a slightly lower transfer fee of three per cent.

Following Halifax’s new deal Barclaycard reduced the fee on its 24-month balance transfer credit card to just 2.9 per cent and the card also offers six months interest free on new purchases. This means the fees on transferring a £4,000 debt would be just £116.

Both MBNA and Tesco offer 23-month balance transfer credit cards with fees of 2.85 and 2.90 per cent respectively.

The best deal is Barclaycard’s 24-month card as this has the lower fee and offers just one month less of an interest-free period than its 25 month deal.

If you think that you will need an extra month to pay off your debts then opt for the 25-month deal.

If you have a smaller level of debt and you think you can repay the balance in 12 months or less then opt for a 12-month balance transfer credit card as that will have a lower fee.

The Barclaycard Platinum Low Balance Transfer Fee Visa card will give you a 12-month interest-free period and charges a fee of just 0.9 per cent. This would be just £36 on a £4,000 debt.