FICO UK Card Report Shows Sharp Decline in Consumer Spending and Rising Delinquencies—Pressure Builds for Households With Long-Term Debt
September Marks Largest Drop in UK Card Spending in Months
UK credit card holders pulled back sharply in September 2025, recording a 3.8% year-on-year decline in average spending—the largest drop in recent months. New data from FICO, based on their analysis of 80% of the UK card market, paints a clear picture: consumers are spending less and struggling more to pay down their balances, with signs that financial stress is deepening.
Balances Rise as Payment Rates Slip
Despite lower spending, average card balances reached £1,915, up 4.5% compared to last September. Even with a slight uptick in the percentage of balance paid during the month, overall repayment rates are still down 6.5% from the previous year, sitting at just 34.64%. This signals that many customers are having trouble reducing their debt, possibly feeling the squeeze from higher living costs and tighter budgets post-Autumn Budget.
More Consumers Are Missing Payments—Especially Among Veteran Cardholders
Missed payments are becoming a bigger issue, especially for those holding cards for five years or more. The number of accounts missing three payments jumped 3.7% from August and is now 1.7% higher than a year ago. Notably, these long-term cardholders also hold the highest delinquent balances—on average, twice as high as their peers—which points to a persistent and possibly growing challenge in this segment. FICO's data highlights that risk teams may need to tailor strategies for supporting these customers, who could be facing long-term financial strain.
| Metric | Amount | Month-on-Month Change | Year-on-Year Change |
|---|---|---|---|
| Average UK Credit Card Spend | £805 | -1.10% | -3.80% |
| Average Card Balance | £1,915 | +0.10% | +4.50% |
| Percentage of Payments to Balance | 34.64% | +1.00% | -6.50% |
| Accounts with One Missed Payment | 1.32% | -2.00% | -6.50% |
| Accounts with Two Missed Payments | 0.31% | -3.20% | -1.60% |
| Accounts with Three Missed Payments | 0.21% | +3.70% | +1.70% |
| Average Credit Limit | £5,900 | +0.30% | +2.50% |
| Average Overlimit Spend | £90 | +1.10% | +3.40% |
| Cash Sales as % of Total Sales | 0.91% | +1.20% | +0.50% |
Veteran Borrowers Hold the Most Delinquent Debt
One striking insight is that cardholders with five years or more history are seeing their ratio of delinquent to total balance rise to twice that of newer customers. With their higher limits and older accounts, these borrowers could require more targeted assistance from card issuers to prevent deeper financial hardship.
Key Takeaways—What to Watch as UK Households Adjust
FICO's data shows a challenging landscape: reduced spending doesn't necessarily translate to lower debt. Rising balances and an increase in deeply delinquent accounts suggest more UK consumers are finding it difficult to regain their financial footing after a turbulent year. As the year progresses, monitoring how payment behaviors shift—and how risk management strategies evolve—will be critical, especially for the group of veteran borrowers at greater risk of long-term debt.
For financial institutions and policymakers, the takeaway is clear: understanding these granular credit trends will be crucial to designing support programs that actually help households rebuild financial resilience. Readers can find more detailed data or subscribe for updates via FICO’s benchmark reporting service.
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