"For the second month, low payment rates (33.4%) and high pre-Christmas spending led to rising average balances. These trends signal continued financial stress for consumers, with balances continuing their persistent upward trend seen in recent years. It is expected that payment rates will increase in January as consumers traditionally focus on paying off Christmas spend in the New Year. December typically sees the number of customers missing one payment increase and 2025 was no exception, as consumers prioritised new spending over repaying balances."
"Analysis of credit card data for December 2025 byglobal analytics software leader FICO shows typical seasonal trends for increased spending. However, balances reached the highest level seen since FICO began analysing credit card data, while payments remained stable. With the start of the new year typically seeing consumers facing the reality of Christmas spending, there's the potential for increased financial stress at the start of the new year."
Spending rose 5.6% from November to December to an average of £830, though it remained 3.5% lower than December 2024. Average active balances increased to a record £1,950, up 1.7% month-on-month and 4.8% year-on-year. The percentage of overall balance paid stabilised at 33.4% in December, 0.1% higher month-on-month but 6.8% lower year-on-year. Customers missing one payment rose 6.4% month-on-month, while those missing three payments rose 3.7% month-on-month and 4.9% year-on-year. Average balances for customers with missed payments are substantially higher than in 2024, signaling ongoing consumer financial stress with expectations of higher repayment activity in January.
Read at Silicon Canals
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