UK Credit Card Spending Hits Record £860 as Consumer Debt Reaches All-Time High

FICO UK Credit Card Market Report: November/December 2024

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02/06/2025 - 04:00 AM

Spending and credit card balances reached the highest averages since FICO records began in 2006

LONDON--(BUSINESS WIRE)-- Spending, balances, payments, and cash usage on UK credit cards followed expected seasonal trends in November and December 2024, with spending and balances reaching the highest averages that global analytics software provider FICO has ever recorded. While missed payments fell in November and December, average balances rose on accounts where payments have been missed.

Highlights

Average credit card spend rose in the lead-up to Christmas 2024, reaching £860 in December; a 6.8% increase on November and a 1.5% increase on December 2023
December saw the highest average balance since FICO records began in 2006 at £1,860 - 4.5% higher than December 2023
The percentage of overall balance paid fell by 3% in November compared to October and by a further 0.5% in December, with 35.86% of the balance being paid off in December 2024
Fewer customers missed payments in November and December 2024 than across the same two months in 2023
Customers using their credit card to withdraw cash fell for the third month in a row, standing at 3.19% in December 2024

Average spending saw typical seasonal increases in the run-up to Christmas. However, with average spend reaching £860 in December – a 6.8% increase on November and the highest since FICO records began in 2006 – the ongoing impact of continued inflation could dent consumer affordability through 2025.

Similarly, average credit card balances reached an all-time high in December at £1,860, with typical seasonal pressures seeing a 3% month-on-month decrease in the percentage of balance paid in November and a further 0.5% drop in December. If seasonal patterns continue, the balance paid is expected to rise in January as consumers focus on paying off Christmas spend.

For customers missing one, two or three payments, the average balance increased year-on-year in November and December – another indicator of the financial pressures faced throughout 2024. Average balances for one missed payment are now £2,255, for two payments £2,780 and for three payments £3,190.

The usual seasonal trend sees a reduction in customers missing one payment in the run-up to Christmas, as people want to keep lines of credit open. However, in December 2024 there was a 9.3% increase compared to November. And after four consecutive decreases in the percentage of customers missing three payments, there was a 1.2% increase in November month-on-month and a further 2.2% increase in December. As indebted customers struggle with payments in the new year, this trend is expected to continue in early 2025.

Given the continued financial pressures affecting households, risk managers should review both limit management and collections contact strategies in order to help customers avoid getting into long-term debt.

These card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service. The data sample comes from client reports generated by the FICO^® TRIAD^® Customer Manager solution in use by some 80% of UK card issuers. For more information on these trends, contact FICO.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

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