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What is a debt consolidation loan?
A debt consolidation loan lets you to move your debts with other lenders to us, so you can have one, simple monthly repayment. It’s an easy way to keep on top of what you owe.
How do debt consolidation loans work?
You can see what your monthly repayments would be using our calculator.
Having just one loan could be more straightforward and easier to manage than a number of payments to different lenders.
But it’s worth noting that consolidating debts might involve payment of a higher rate of interest or charges – or both. Consolidating debts might also increase the overall period required for repayment.
To apply online, you'll need to
Have a Barclays current account or Barclaycard account
Be a UK resident
Be aged 18 or above
You can use your loan for almost anything, apart from
If you’ve started an application already, it’s easy to pick up where you left off.
Log in to Online Banking here, and we’ll take you to your saved application form.
As a lender, we have a responsibility to act fairly and as part of this we have committed to follow the Standards of Lending Practice. This note sets out some of our key responsibilities and what we ask of you, to ensure that the relationship works well for both of us.
What we ask of you
Please let us know if
We would also encourage you to refer to the terms and conditions associated with your current account, credit card or personal loan.
Work out how much you'd like to borrow, with our debt consolidation loan calculator. The debt consolidation calculator results we display are based on the representative APR for the amount you enter. Your actual rates and repayments might differ and will be based on your personal circumstances, the loan amount and term.
APR Representative
based on a loan of
repayable over
months
at an interest rate of
per annum (fixed)
.
Monthly repayment of
.
Total amount payable
.
Representative APR applies to loans of
If you have a current account with us, we could tell you your personal loan rate upfront – without affecting your credit score.
You can see if you’ve been pre-selected to apply for a loan – this means you can see how much you may be able to borrow, and your personal rate, in a few minutes*. All you need is
A current account or Barclaycard account with us
Online Banking or the Barclays app
* You need to be registered for Online Banking or the Barclays app. Not everyone is pre-selected – if you aren’t, you won’t be able to apply online or in the app. Please get in touch to discuss your options.
Spending on credit can seem like the norm for many people. But when debts mount up with different creditors, it’s easy to feel like you’re not in control of your finances. There are different options you could consider to consolidate your debt.
Ways to help manage your debt
It pays to do your research on the different ways you can manage your debt – as it could save you money in the long run. Whichever option you choose, try to deal with your most urgent debts now – things like your rent or mortgage payments, and council tax. These are called priority debts. Not paying them could mean huge penalties, such as having your home repossessed, or possibly even a prison sentence. We’ve listed some of the ways you could manage your debt.
Debt consolidation loan
As we’ve mentioned, a debt consolidation loan is where you take out one large loan that pays off your existing debts. It’s usually arranged by you through a bank. These types of loan are usually used to pay off credit card and other personal loan debts.
Debt management plan
This is a plan between you and your creditors to pay off all your debt. It’s an agreement that’s arranged through a debt management company. Generally, but not always, your creditors will freeze the interest and penalties so that you can begin to reduce your debts more quickly.
Administration Order
You can apply to the county court for an Administration Order if your debts are under £5,000 and you have a county court judgment (CCJ). You don’t need to pay a fee to apply and the court decides what you pay back, depending on your income.
Individual Voluntary Arrangement (IVA)
An IVA is an agreement you make with your creditors through a court. You’ll need to set this up through an insolvency practitioner. This is a formal, legal debt solution, so if you don’t keep up repayments, you can be made bankrupt.
For more information on debt and ways to manage it, you can contact Citizens Advice.
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Learn why your credit rating is important, and how to improve it so you’re more likely to be considered for credit in future.
Worried about your finances? Our practical advice can help you tackle money troubles, improve your financial habits and find the support you need.
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Home improvements, buying a car or splashing out on something special? Barclays Money Mentors can guide you through the best options for you.
What's an APR?
We explain what APR means – and the difference between representative and personal APR.
A secured debt consolidation loan is consolidating your debts into one loan and securing it against an asset, like your property. This means your home might be repossessed if you don’t keep up with your repayments. You could get a better interest rate if you secure your loan against an asset like your home.
An unsecured debt consolidation loan is consolidating your debts into one loan without securing it against any asset. You’ll need a good credit rating to get this.
Advantages
It could help you manage your debts better, as they’ll all be in the same place, with only one fixed monthly payment. This could help you improve your credit rating. You might be able to lower your monthly payment and how much interest you pay too.
Disadvantages
Whether there are any disadvantages depends on whether this is the right option for your circumstances – it’s all down to what suits you.
Yes, you can use a debt consolidation loan to pay off your credit card debt, but it depends how much debt you have on your credit cards. Remember – you’ll still need to pay back what you owe, but you’ll be paying a single rate to us instead of various rates to a number of card providers.
This is all down to what suits you and your personal circumstances – for some people this means a balance transfer, while others find consolidating their debt easier.
Check to see if you’re eligible to apply for a loan in Online Banking or your app now.
Please note that we might not have all the information we need to show you a provisional loan limit.
If you have any questions, you can speak to a lending specialist on 0345 734 5345 4
We’re on hand if you’d like to discuss your options in person. You can find your nearest branch and opening times here.
