Using a loan to reduce your monthly outgoings– it can be done Advertisement Feature Cutting back on fripperies and keeping a beady eye on the household budget has become a major preoccupation for many UK consumers seeking to ride out the recession without incurring additional debt and financial hardship. Yet, no matter how canny you are at budgeting for the now, for those with high levels of previous credit and store card debt, the interest rates  on cards can make reducing the balance a tall order. This is because with old debt, a high proportion of monthly repayments goes to paying off the interest and not the actual borrowed capital.  With so many essential financial commitments to juggle, it’s all too easy to feel overwhelmed. The essential tip for managing personal finances is to remember to stay calm - and that there are numerous support and advisory agencies that can help you, should you find yourself getting into trouble. The UK’s leading advisory charity, the Consumer Credit Counselling Service (CCCS) urges consumers to take stock and seek help if they need it well before debt spirals out of control. It offers a free and confidential counseling session online and a debt management plan service, as well as advice on setting and managing your budget. Preventative measures If, like many Britons, you’re struggling to manage your mortgage repayments, a tidal wave of household utility and essential home and car insurance bills, as well as your credit card debt, it is vital to have a clear picture of what you’re up against: Always keep up with financial correspondence, check bank statements and regularly check the balance of your current account. Set a realistic monthly budget for all household expenses and standing orders and stick to it. Also be sure to factor in budget for irregular bills such as your car MOT and contingency for ‘surprises’ – such as emergency dental treatment or replacing household appliances. Write down everything you spend money on to help you revise your budget and get firmer control over spending on non-essential items. When you’re out shopping, always ask yourself if you really do need the item you’re coveting before buying. It pays to exercise self-control. Use direct debits for paying utility bills and other regular monthly commitments –  it may give you small discounts. Card wise If you have more than one credit card, work out which needs to be paid off first or which requires to be cleared with larger monthly repayments depending on the level of the debt and interest rate. Stop using your credit cards as a payment method to avoid getting into further debt. Investigate all the 0% balance transfers currently available, check the handling cost of transferring your existing balance to a new card,  and then move balances to take advantage of interest free deals offered for the longest terms with the lowest handling fee. How to consolidate your debt Some UK customers are opting to take out a personal loan, which can offer an effective means of reducing your outgoings by consolidating your debt into one manageable monthly payment. Your chances of qualifying for and setting up a loan has improved in recent weeks as some of the leading banks have re-opened their doors for unsecured personal loans. Barclays is offering a lower rate for loans taken out this May – typically 8.8% APR - and has announced that they are committed to increasing loans to customers by £11bn this year. In order to assess whether a personal loan would be the right option for you, add up your total monthly repayments, including high interest overdrafts, cards and other loans and check whether you would pay less for a consolidation loan. Depending on your circumstances, a lower interest personal loan, which consolidates debts, could help you to set up a more manageable debt repayment programme. If you’d like to find out more about a personal loan from Barclays, please visit www.barclays.co.uk/loans If you're a Barclays current account holder, you can take advantage of Barclayloan Plus at 9.9% APR typical* on our loans from £7,500 to £25,000. You could also have your money within 3 hours if your online application is accepted. † † If you apply before 2pm on a working day and your application is approved. Apply after that time and, once approved, you'll get your money the next working day * This rate was correct at time of publication, 20 August 2009. Eligibility criteria and conditions apply. Loans are subject to status and application. We set individual rates on the basis of your financial status and the amount borrowed. You may be offered a Barclayloan instead of a Barclayloan Plus and therefore the rate you're offered may differ from the typical APR shown.** ** If you're offered a better deal anywhere else within 14 days from opening your Barclayloan or Barclayloan Plus with Barclays, we'll beat your offer. Terms and conditions apply to this offer. Please follow this link for more details – view Price Guarantee terms and conditions. The information given in this article was correct as at August 2009. 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. 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. Barclays Bank PLC is not liable for any third party 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. This is not intended and will not affect any liability of Barclays under the provisions of the Financial Services and Markets Act (2000.)