We’ve put together a review of the current Barclays debt consolidation loan to see how good it really is – and how it measures up against personal loans offered elsewhere in the UK.

Barclays Bank is one of the UK’s oldest banks. It all started when a Quaker opened a goldsmith bank in 1690. Barclays was also the first UK bank to release a cash machine (ATM). Over the years, Barclays has shaped into one of the most established and front-foot multinational banks with millions of customers.

They offer an array of everyday accounts, savings products and provide credit to businesses and individuals. Their personal loans include the Barclays debt consolidation loan. Discover more about these loans right here. 

First, What’s Debt Consolidation?

If you have multiple debts, such as loans, credit cards or store cards, debt consolidation is the process of paying these off by taking out more credit. One of the popular ways to do this is through a loan. You take out a new loan, known as a debt consolidation loan, and use the money to pay off all your other debts.

Now you just one or fewer debts. This isn’t done to group all your debt in one place, although that is helpful too. It is done to get better repayment terms, such as lower overall interest. Thus, debt consolidation is done to make repayments more affordable. 

Don’t just assume debt consolidation is the right strategy for you. Learn more about it with the help of debt charities and assess other debt solutions first. 

What Is a Barclays Debt Consolidation Loan?

Barclays offer personal loans that can be used for buying new cars, one-off purchases and debt consolidation. Technically, there is no such thing as a Barclays debt consolidation loan, but rather, a Barclays personal loan that can be used for debt consolidation.

This loan can be used to access funds from £1,000 to £50,000 and the interest you pay will depend on the length of the repayment term and your financial situation.

Barclays Debt Consolidation Loan, Poor APR Rates?

Barclays advertise some of the worst representative APR rates on the market compared with other high street UK banks. Unlike Santander, NatWest, Lloyds and Halifax who offer rates between 3% and 3.9% for loans between £7,500 and £25,000, Barclays’ representative rate is currently 5.5% on loans between £7,500 to £15,000.

However, even though Barclays looks a bad deal from afar, you need to consider that these are just representative APR rates. In reality, few people are able to access these really low rates and end up paying a lot more anyway. 

For example, this woman received a much higher quote:

“I have spoken to my bank, Barclays, who have agreed in principle to an unsecured consolidation loan of £40,000 at a fixed APR of 17.9%.”

[Money Saving Expert Forum]

This is not unusual. 

Barclays Debt Consolidation Loan Eligibility

Barclays will welcome applications from anyone who is 18 years or older and lives in the UK, as long as you already have a Barclays current account. 

Unlike NatWest and Lloyds, there is no timeframe that you need to have held the account before applying for the personal loan. Although it could still affect the bank’s decision.

You will also need to have Barclays online banking to apply. This is a way of ensuring only Barclays customers can make an application. 

Is There a Barclays Debt Consolidation Loan Calculator?

Yes, Barclays offer a loan repayment calculator on their website. You can use this to get an idea of how much you can borrow and what your repayment terms will be. But this is just a rough guide because the calculator does not know your exact situation.

It is normal for the actual terms you are offered are higher than what you see on the Barclays debt consolidation loan calculator. 

Barclays Debt Consolidation Loan Reviews

There aren’t too many reviews about Barclays debt consolidation loans online. Understandably, many people will choose to keep their debt repayments and financial situation off of the internet. However, we did find a couple of red flags when researching the comments left on Trustpilot: 

“Barclays Loan U.K wanted £329.06 of me to change my loan payment date! Disgraceful and proves how blood sucking leeches they are.”

[Trustpilot]

“My loan repayments going through standing order same as before… but receiving missed payment warning letters for last 6 months for no reason.”

[Trustpilot]

How Do I Apply for the Barclays Debt Consolidation Loan?

You can make your application via your Barclays online banking account. Because you are making it from your customer account, the application process is usually much faster and you can get a decision almost immediately. Sometimes additional documents may be needed for Barclays to make a decision. 

If you get quick approval for the loan, you might even receive the credit into your Barclays current account in the same day. 

Can I Repay My Barclays Loan Early?

Yes, you can make both additional payments or agree to settle the personal loan in advance of your planned final repayment date. As is the case with most lenders, if you settle the loan early, you will be subject to additional fees.

Barclays currently charge you 30 days of interest, which is much better than some other banks like Lloyds that will charge over 50 days of interest for early loan settlement. 

Our Money Nerd Verdict on Barclays Personal Loans

The Barclays representative APR will be enough for most people in debt to run for the hills (or for competing banks). But don’t be too hasty to cross Barclays off your list because of their higher 5.5% APR rate. 

The lower rates found elsewhere might not be accessible to you. Furthermore, if you don’t have a Barclays current account you will need to open one to make an application. And remember that opening an account can leave a mark on your credit file. 

Our recommendation? Shop around, speak to debt charities, and probably avoid Barclays if you don’t bank with them already. 

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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