Core Insights - The analysis indicates heightened financial stress among cardholders due to a combination of accelerating balance growth, declining payment rates, and increasing overlimit usage [1][7]. Group 1: Credit Card Performance - Average active balances have reached the highest level, increasing by 1.1% month-on-month to £1,915, and are 4.9% higher year-on-year [7]. - The percentage of total balance paid has dropped to 34.3%, reflecting a 1.6% decrease month-on-month and a 6.2% decrease year-on-year [7]. - Spending rose to an average of £815 in August, marking a 1.5% increase month-on-month but a 2.4% decrease year-on-year [7]. Group 2: Missed Payments and Financial Distress - The percentage of customers missing one payment decreased by 3.5% month-on-month, with a significant 16% decrease year-on-year, while the average balance for these accounts increased by 0.5% month-on-month to £2,400 [4]. - Accounts with two missed payments saw a 4.2% monthly increase in the percentage of customers, with an average balance rising by 0.6% to £2,895, remaining 6.0% higher than the previous year [5]. - The average balance for accounts with three missed payments fell by 1.1% month-on-month to £3,265 but is still 7.4% higher than last year, indicating persistent elevated balances among the most delinquent customers [6]. Group 3: Overlimit Accounts - There was a 5.8% increase in overlimit accounts month-on-month, with average credit limits remaining virtually unchanged at £5,880 [6][7]. - The trend of increasing overlimit usage suggests a growing need for credit limit management and early-stage collection strategies to prevent further balance escalation [8].