UK credit card balances rise as payment rates decrease in June

Rising credit card spend and falling payment rates are contributing to higher average credit card balances across the United Kingdom, according to newly released data from FICO.

The latest data reveals that credit card spending rose by 4.6% month-on-month in June 2025, reaching an average of GBP £825 per card. Although this uptick aligns with usual seasonal trends seen over the summer months, spending was still 1.4% lower than during the same period last year.

Balances and payments

Average outstanding balances continued their upward trajectory, hitting GBP £1,885 per card. This marks a 1% increase compared to May and a 4.6% increase year-on-year. In contrast, the proportion of balances paid off by customers fell by 2.1% month-on-month and dropped by 5.7% compared to June 2024.

FICO stated:

"While spend in June 2025 has followed typical summer patterns to increase month-on-month, it is still 1.4% lower than the same month last year. This provides clear evidence of the lack of consumer confidence in the UK economy. The fact that average balances are continuing to trend upwards while the percentage of balance paid continues on a downward trajectory further underlines the financial balancing act being played out in UK households."

Missed payments

The data highlighted changes in missed payment patterns. The percentage of customers missing one payment fell by 11.3% in June compared to the prior month, and by 16.8% versus June 2024. Similarly, the percentage of cardholders missing three payments also fell by 11.8% month-on-month, and was 4.8% lower year-on-year.

However, the number of customers who missed two payments increased by 5.8% from May, although this figure was still 1.9% lower than in June 2024.

Reflecting on these figures, FICO noted:

"Another factor is the pattern of missed payments and average balances across the first half of the year. This has been erratic, but the percentage of customers missing one payment is trending down overall, with June seeing a monthly drop of 11.3% and an annual drop of 16.8%. The percentage of customers who missed three payments also fell month-on-month in June by 11.8% month-on-month, and is 4.8% lower than June 2024. The percentage of customers missing two payments has, however, risen month-on-month by 5.8%; it is 1.9% lower than in June 2024."

Balances and missed payments

The data also showed that average balances associated with missed payments continue to rise. For accounts with one missed payment, the average balance climbed to GBP £2,395, up 0.6% from May and 7.2% year-on-year. Accounts with two missed payments saw average balances reach GBP £2,885, a 2.9% monthly increase and a 7% rise on the previous year. Meanwhile, the average balance for accounts with three missed payments dropped slightly by 0.3% month-on-month, but is still 4.9% higher than in June 2024 at GBP £3,200.

Cash usage trends

Cash withdrawals on credit cards also increased, with a 2.8% rise from May. This pattern is expected to continue through to September, in line with recent trends since March. FICO suggested that cash usage is another area of concern for lenders overseeing customers who may be financially vulnerable.

FICO commented:

"As FICO data shows early-stage average missed payment balances continuing to trend up, card issuers should focus on early detection and specialised contact treatment, particularly for those customers who are especially vulnerable to the continued high cost of living and year-on-year inflation increases. These customers may also be struggling with Buy Now Pay Later payments, as affordability checks will only come under regulation in July 2026."

The figures in this report derive from client data gathered by FICO's TRIAD Customer Manager solution, currently used by around 80% of UK card issuers.