Barclays Bank is a leading co-branded credit card issuer and financial services partner in the United States. The bank offers co-branded credit cards, small business credit cards, installment loans, POS Finance, online savings accounts, and CDs.
Although it was last reported in 2021, Barclay stands as the 9th largest bank in terms of total outstanding credit card balance. According to WalletHub.com, Barclay card consumers have a total of $22.12 billion of credit card debt. This represents about 2.37% of the total market share.
What are your options to pay back your Barclays credit card debt?
Facing a large amount of credit card debt and/or personal loans can be scary. It’s a constant reminder that we messed up. And chances are neither your formal education nor your parents prepared you on how to handle this situation.
However, there are many debt consolidation options to consider when trying to pay back your Barclays credit card debt. The five main options are:
- Debt Consolidation Loan
- 0% Balance Transfer
- Barclays Internal Hardship Program
- Debt Management Plan (Credit Counseling)
- Debt Settlement Plan
But the one thing that must be done regardless is putting a stop to overspending. Each time we use a credit card we are likely purchasing something we can’t afford.
Create a detailed budget outlining all income and all expenses. Revisit this budget periodically and make revisions. Increase income. And decrease expenses.
Barclays Credit Card Hardship Program
If you find yourself struggling with credit card debt, hardship programs can help. In order to find out if you qualify, contact Barclays directly. Provide as many details as possible about your financial situation. Be prepared to provide them with your monthly income and expenses. Stating that you are simply looking for a lower interest rate and payments probably won’t work. You must have a compelling hardship such as job loss or medical emergency to qualify.
Any concessions granted by Barclays will typically be temporary. A lower interest rate will likely last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit or even close your card once they approve you on their hardship plan.
If you have no luck getting concessions or want more long-term benefits, credit counseling is your next best option. Barclays works incredibly well with these nonprofit organizations. They offer clients interest rates usually below 5%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.
DebtWave has been helping Barclays clients for more than 20 years
DebtWave has worked with various credit card accounts, including Barclays, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as American Express, Comenity Bank and Chase accounts. Clients make payments via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.
From 2010 to 2024, DebtWave helped clients with a total of 3,646 Barclays accounts. The total debt enrolled onto our program during that time was $14.7 million with an average balance of $3,646 per account. Many clients witnessed their interest rates drop below 7% along with a reduction in monthly payments.
Here are some additional stats from these clients:
The Dream of Getting Out of Debt on Your Own is Still Alive
Paying back your credit card debt seems unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make progress.
If you succeed in reducing your rates below 10%, then use a payoff calculator or google spreadsheet to create a plan. Build an iron clad budget that accounts for all expenses. Then find ways to increase income and reduce expenses. Stay motivated. And most important, refrain from using cards again.