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?
- Apply in Online Banking or the Barclays app
- We’ll let you know our decision
- If we approve your application, we’ll pay the money into your account straight away2
You can see what your monthly repayments would be using our calculator.
Take control of your debt with a Barclayloan
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.
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Top-up option
Already have a Barclayloan and need more funds? You can apply to increase your borrowing with us.
If you just want to take out a second loan instead of topping up, that could be an option too.
Choose your payment term
The maximum loan repayment term is 5 years.
You can get an idea of the rates and charges before taking out a loan by using ourloan calculator.Please see the representative example below.
Repaying your loan early
You can repay your loan early, in part or in full, whenever you like – there’s no minimum repayment period.
If you repay it in full, you’ll pay the outstanding balance, as well as any other interest that’s due.You can see what your full early payment amount would be at any time in Online Banking or your Barclays app.
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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
- Business reasons
- Investments, including buying stocks and shares
- Timeshares
- Purchasing property (home improvements are fine)
- Gambling-related expenses
- Repaying CCJs (county court judgments)
- A purchase made by combining this loan with any others
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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.
Go to application
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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.
- We will lend responsibly and aim to provide a product that is affordable for you.
- We will provide you with information about our products and services and how they work, in a clear and understandable way, so that you can decide what’s best for you and your needs.
- We will endeavour to make sure our products and services offer, wherever possible, the flexibility to meet your needs.
- We will treat you fairly and reasonably at all times and make sure that you are provided with a high level of service.
- If you tell us about any inaccuracies, for example around the personal information we hold about you, we will act quickly to put it right.
- We will always aim to help you if we see, or you tell us, that you are having trouble financially. We will seek to understand your overall circ*mstances, try and identify options that you can afford and where appropriate, provide a reference to free debt advice.
What we ask of you
See AlsoBest Debt Consolidation Loans for 2024What is a Debt Consolidation Loan? Qualifying; Making PaymentsHow to Consolidate Debt With Bad Credit - Experian5 smart alternatives to debt consolidation loans- We ask you to think carefully about whether you can afford to repay the money you want to borrow and to be open in your dealings with us.
- Take care of any cards, PINs, online log-in details and other security information to help prevent fraud and help us to protect your accounts.
- Tell us as soon as possible if your card has been lost or stolen, or if you know or suspect someone is misusing your confidential information e.g. your PIN or online log-in details.
- Carefully check your account statements to make sure they are accurate. If anything isn’t right, please get in touch with us.
Please let us know if
- Your contact details change, so we can keep our records up to date.
- Your circ*mstances change, particularly if what’s happened is likely to cause you difficulties in managing your account or financial problems.
- You think that you won’t be able to keep up with your repayments. The sooner you do this, the more likely it is we’ll be able to find a way to help you.
We would also encourage you to refer to the terms and conditions associated with your current account, credit card or personal loan.
Try our debt consolidation loan calculator
Work out how much you'd like to borrow with our debt consolidation loan calculator. The results are based on the representative APR for the amount you enter.The representative APRs shown are based on all loan applications made by Barclays customers. Your actual rates and repayments might differ and will be based on your personal circ*mstances, the loan amount and term.
Amount
Amount
£
Term in Months
Term
months
The same every month
Loan required
Based on the details you entered
Representative example
APR Representative
based on a loan of
repayable over months
at an interest rate of
per annum (fixed) pa (fixed).
Monthly repayment of .
Total amount payable .
Representative APR applies to loans of
How to apply
If you have a current account with us, we could tell you your personal loan rate upfront – without affecting your credit score.
Apply for a debt consolidation loan
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
Check now
* 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.
Consolidating your debts
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.
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Debt consolidation can be a useful way to manage debt. Check your options to see if it’s right for you and your circ*mstances.
A loan to consolidate your outgoings
For most people, a debt consolidation loan involves taking out a single loan that pays off your existing debts. This could work out cheaper if you’re offered a lower rate of interest overall, when comparing it to your other debts’ interest rates.
It won’t reduce the amount that you owe, but it’ll give you a chance to manage your debt in a simpler way – by paying the loan off with a single monthly payment.
When you consolidate your other borrowing into a single loan, you may be charged early repayment fees. If you don’t want to pay these fees, you may prefer to keep your debts separate.
If you do consolidate your debt, just make sure you don’t borrow more until you’re sure you can afford it.
Still not sure? It’s best to talk to an expert to see if a debt consolidation loan is right for you. They can talk you through the pros and cons, and may offer you other options that you hadn’t yet considered.
You can call a free helpline, such as the National Debtline on 0808 808 4000, or you can get in touch with the Citizens Advice Bureau.
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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.
Need some more help?
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Understanding loan rates
What's an APR?
We explain what APR means – and the difference between representative and personal APR.
APR explained
Debt consolidation loan questions and answers
What is a secured debt consolidation loan?
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.
What is an unsecured debt consolidation loan?
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.
What are the advantages and disadvantages of debt consolidation?
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 circ*mstances – it’s all down to what suits you.
Can I use a debt consolidation loan to pay off credit card debt?
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.
Which is better – balance transfer or debt consolidation?
This is all down to what suits you and your personal circ*mstances – for some people this means a balance transfer, while others find consolidating their debt easier.
Talk to us about loans
Online or in-app
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.
Log in to check
Over the phone
If you have any questions, you can speak to a lending specialist on 0345 734 53454
Visit us in branch
We’re on hand if you’d like to discuss your options in person. You can find your nearest branch and opening times here.
Branch finder
Important information
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You need to be registered for Online Banking or the Barclays app. It usually takes less than 10 minutes to apply, but if you’re not registered it will take longer.
You might not be able to apply for a Barclayloan, or see your personalised price quote or provisional loan limit online or in your app, because certain restrictions apply. If this happens to you, please contact us to discuss your options.Return to reference
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If you apply online and your application is approved, you’ll need to print or download your agreement. If you apply in the Barclays app and it’s approved, you’ll need to have it emailed to you. As long as you do one of these and sign your agreement online between 5am and 11pm, you’ll usually get your money straight away (within a few minutes). If you don’t bank with one of the main UK high street banks, sometimes it can take up to a couple of hours. If you sign after 11pm, you’ll usually get your money before 9am the next day.Return to reference
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The rate you’re offered may differ from the Representative APR shown and will be based on your personal circ*mstances, the loan amount and the repayment term.
All loans are subject to your financial circ*mstances and borrowing history at the time you apply. Eligibility and conditions apply. You must be a UK resident to apply.Return to reference -
Lines are open Monday to Saturday, from 8am to 9pm, and bank holidays from 8am to 6pm. To maintain a quality service, we may monitor or record phone calls.Call charges.Return to reference
