The new credit card that helps to pay down debt

The group is offering an interest rate of just 1.9 per cent for 12 months on balance or money transfers, with no handling fee.

Although there are a large number of credit card providers currently offering 0 per cent interest deals for 12 months or longer, they typically charge a fee of around 3 per cent or more of the balance being transferred, making them more expensive than the MBNA offer.

Unlike most introductory credit card deals, which only apply to balance transfers or purchases, the MBNA offer can also be used for money transfers. This means customers can have money transferred to their current account, which can then be used to pay off an overdraft or reduce a loan.

The offer is only available to customers who take out their card online, while any transfers have to be made within 90 days of the account being opened.

Interest on purchases made using the card is charged at a typical rate of 16.9 per cent.

Andrew Hagger, of financial website Moneynet.co.uk, said: "Whilst interest-free deals allowing you to switch balances from one piece of plastic to another are almost 10 a penny, the option to use a balance transfer to clear non-card debts is a rare opportunity to save on expensive loan or overdraft interest.

"The other big plus point with this particular deal is that the usual hefty money transfer handling fee of 4 per cent does not apply to transfers made within the first 90 days."

He said borrowing 2,500 through the card would cost 47.50 in interest during the first 12 months, compared with 193 if the same sum was borrowed through a personal loan charging interest of 14.9 per cent and nearly 500 if it was borrowed through an overdraft charging 19.9 per cent.

He said: "This is an excellent opportunity to get to grips with your overdraft and save some money in the process.

"The interest rate on the card reverts to 16.9 per cent APR typical after 12 months, so make the most of the low rate and knock your debts into shape whilst you can."