Your cookie settings

Cookies are very small text files that some websites store on your computer when you visit them.

Cookies do lots of different jobs, like letting you navigate between pages efficiently and remembering your preferences.

We use cookies on our website to make your browsing experience better. By using this website you accept our use of cookies in accordance with the settings below.

Your allowed cookies:

Strictly Necessary are always allowed by default.

Table goes here
More information about cookies

Debt management

Loans and credit InfoBank

There are plenty of ways you can keep on top of your debts. Read on to find out more about what you can do if things start getting out of hand.

Budget

  • Look closely at your debts. You may not realise how much you really owe
  • You can't stop spending altogether, so draw up a budget to monitor your outgoings and prevent further debts. Write it down and stick to it or you're going nowhere. Our budget planner can help with this
  • Give your debts a priority - rent or mortgage arrears and related insurances first, then council tax, followed by gas and electricity. Then see what's left over to pay others and work out a realistic debt management plan. Even if your repayments take years, it's better than letting the situation get worse


Shop around for a good rate

  • Find out what interest rate you're paying on loans, overdrafts, and store and credit cards. Pay off the most expensive first and close the account. Remember to keep up the minimum repayments on the cheaper debt(s)
  • If possible, transfer the most expensive debt to one with a lower interest rate. Many card providers offer special deals or very low interest rates on balance transfers. Be realistic about the time it will take to pay off your debt and check the rate you'll pay when the balance transfer ends. You may find it easier to manage a loan where you pay off a fixed amount each month


Consider debt consolidation loans

  • Taking out a debt consolidation loan to absorb smaller, more expensive debts can be a good idea, as a single monthly repayment is tidier and more manageable. Just don't be tempted to start borrowing more on top
  • Interest rates on some debt consolidation loans can be high. You may find you end up paying more in the end. Always check
  • Missing payments on a debt consolidation loan could mean risking your home, if you are required to provide this as security


Don't ignore it

  • Don't ignore your debt problem. Your credit rating can be checked by all companies to see if you have a poor credit history, whether you want a mortgage or finance for a fridge
  • Missing repayments can seriously damage your ability to get credit in the future. You may end up unable to buy goods on credit or get a mortgage
  • Act fast. As soon as you think you may have a debt problem, contact your creditors (the people you owe money to) to negotiate or extend the term of your debts. They will usually be receptive
  • Ultimately, the alternative is bankruptcy. This usually means you’ll be unable to get credit for many years


The future

  • It sounds obvious, but be disciplined and don't take on more debt or credit than you can afford
  • Shop around for the best deals and get rid of expensive cards. Remember that while you may be offered a cheaper headline rate, you may pay for it in fees and early repayment charges
  • You can get free advice from The Advice Guide from the Citizens Advice Bureau , the Consumer Credit Counselling Service   and Payplan - call them on 0800 917 7823
     

See our terms and conditions 1

Important information

1. The information given in this article was correct at the time of writing. It does not, however, take account of any changes in regulations, the law or interest rates since that time. This article is not a substitute for obtaining professional advice from a qualified person or firm. Barclays is not liable for any opinions expressed. While every effort has been made to ensure that the information contained is accurate at the time of publication, no liability for damages is accepted by Barclays, the publishers or any other organisation or person providing information, arising from any errors or omissions that may appear, however caused - or from any editorial alterations to submitted information. Barclays is not responsible for the accuracy or content of web sites of other providers which may have links from this website. In creating hypertext links to any other web site, Barclays is not recommending that web site or giving any assurances as to its standing. Examples given of products and services are not exclusive. Other companies may provide the same products and services, and inclusion of a product or service should not be taken to indicate that Barclays recommends it over any similar product or service. Site terms and conditions
 

Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Barclays Bank PLC subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Further details can be found at www.lendingstandardsboard.org.uk. Barclays Insurance Services Company Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 312078).

Barclays Bank PLC. Registered in England. Registered no. 1026167. Barclays Insurance Services Company Limited. Registered in England. Registered no. 973765. Registered office for both: 1 Churchill Place, London E14 5HP. ‘The Woolwich’ and ‘Woolwich’ are trademarks and trading names of Barclays Bank PLC. Barclays Business is a trading name of Barclays Bank PLC.


 

Barclays Premier League

Proud sponsors of the Barclays Premier
League & the Barclays ATP World Tour Finals

Barclays APT  World Tour Finals

Financial Services Compensation Scheme. Protecting your money. Find out more here.