Consumers who have run up debts on credit cards are being urged to take advantage of competition in the credit card market where some of the best deals are available in years.

Card companies are jostling to draw in customers with eye-catching fee-free deals and generous 0 per cent offers.

Capital One, one of the biggest card providers, today launched a card promising 0 per cent on balance transfers and purchases for 15 months: a deal labelled "unusually generous" by experts.

The competition in the credit card market comes as most institutions are curtailing lending and tightening criteria on personal loans and mortgages. Credit card companies have cut limits for those who have several cards or who are not using their full limit, but are still competiting to attract customers.

Samantha Owens, of Moneyfacts, the comparison site, said: "This new Capital One deal is one of the longest deals we have seen. That the card offers this for both balance transfers and purchases is rare and means consumers do not have to worry about one deal ending, negating any benefits on the other deal."

Lenders have previously been accused of "conning" customers by drawing borrowers in with a long-term zero interest rate offer on balance transfers while offering shorter 0 per cent periods on purchases. Payments go towards paying off the balance first meaning the money spent on purchases is not paid off. Customers consequently end up accruing interest.

Virgin Money also offers 15 months on balance transfers but caps its introductory rate of 0 per cent on purchases at three months after which it charges 15.9 per cent.

Capital One's card reverts to 12.9 per cent annual interest rate at the end of 15 months.

The card was launched as new figures reveal 38 per cent of people in debt are concerned they may not be able to repay money they owe. A survey from Moneyexpert.com, another comparison site, found concerns over borrowing had intensified in the past year, yet one in four debtors have nontheless increased their levels of personal debt since February.

Sean Gardner, of Moneyexpert, said: "The rising cost of living including surging food and energy bills is beginning to take its toll on consumers who have debts to repay. With close to forty per cent of those who owe money worried about their ability to stay on top of their debts, these latest figures add up to a collective cry for help as Britain’s enormous debt mountain looms larger than ever. People should not bury their heads in the sand and work out a repayment plan or seek advice if their debt is out of countrol.”

According to MoneyExpert around 32 per cent of people with debts have increased the amount they have borrowed over the past three months, while only 24 per cent have successfully cut the amounts they owe.