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UK Credit Card Balances Surge Amid Rising Financial Strain

9/16/2025

38 6 Full Breakdown

Summary

Story summary

FICO's analysis shows a 5.1% year-on-year rise in the average UK credit card balance, now at £1,895.
The proportion of balances paid off decreased by 7.7%, highlighting growing affordability issues.
Average balances increased by 0.4% month-on-month, despite seasonal spending declines.
In July, customers missing payments rose by 10.1%.
More customers are using credit cards for cash withdrawals, indicating increasing financial stress.

History

Historical Context

The 2008 global financial crisis significantly impacted UK consumer debt, with households accumulating £1.5 trillion in debt and credit card debt rising by 10%. This trend reflects ongoing economic strain, as evidenced by a recent 5.1% increase in credit card balances, raising concerns about a return to pre-crisis debt levels and potential long-term economic instability.

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Story summary

FICO's analysis shows a 5.1% year-on-year rise in the average UK credit card balance, now at £1,895.
The proportion of balances paid off decreased by 7.7%, highlighting growing affordability issues.
Average balances increased by 0.4% month-on-month, despite seasonal spending declines.
In July, customers missing payments rose by 10.1%.
More customers are using credit cards for cash withdrawals, indicating increasing financial stress.

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