Core Insights - The analysis of credit card data for January 2026 indicates persistent financial pressures as customers reduce spending and focus on paying credit card bills, with high missed payments continuing from 2025 [1][4] Spending Trends - Spending fell by 9.4% month-on-month to an average of £755, which is 1.8% lower than January 2025, indicating ongoing financial pressures [6] - The percentage of overall balances paid improved slightly to 33.9%, which is 1.4% higher month-on-month but 6.7% lower than January 2025 [6] Payment and Balance Dynamics - There was a 4.8% year-on-year increase in average balances, demonstrating that affordability challenges from 2025 have persisted into 2026 [2][4] - The number of credit card accounts with two missed payments increased by 14.3% month-on-month, suggesting a potential acceleration of financial stress among vulnerable customer segments [4] Credit Limit and Missed Payments - Accounts exceeding their credit limit increased by 6% month-on-month and 6.2% year-on-year, further evidencing persistent financial pressures [6] - The number of customers missing one, two, and three payments increased month-on-month, with average balances of these accounts being higher than the previous year [6]

Core Insights - The FICO UK Credit Card Market Report for November 2025 indicates that pre-Christmas spending was below 2024 levels, with rising balances and the lowest payment rates since 2021, highlighting financial stress among consumers [1] Spending Trends - Average credit card spending increased by 2.6% from October to November, reaching £785, but remained 2.4% lower year-on-year [1] - The percentage of customers using credit cards for cash withdrawals saw a significant decline of 12.3% month-on-month and 15.2% year-on-year [1] Payment and Balance Analysis - Payment rates dropped to 33.4%, down 2.8% from the previous month and 7.4% from November 2024, indicating increased financial strain [1] - Average active balances rose to £1,915, reflecting a monthly increase of 0.8% and an annual rise of 5% [1] Delinquency and Risk Indicators - The number of credit card accounts exceeding their limit increased by 6.4% month-on-month and 5.9% year-on-year [1] - Delinquent balances have grown across all categories, suggesting that customers missing payments are doing so with higher debt loads than in previous years [1] Strategic Recommendations - Risk and collections teams are advised to enhance monitoring for customers showing early signs of payment distress, especially as the holiday season approaches [1] - Effective account management should consider consumers' current financial situations and their capacity to manage existing and additional debt [1]