Core Insights - The latest credit card data from FICO for September 2025 indicates that households are facing financial challenges, with signs of increased delinquency among cardholders with accumulated debt [1][2] - There is a notable decline in average credit card spending, reflecting subdued consumer confidence [3][9] Spending and Balances - Average UK credit card spend in September 2025 was £805, marking a 3.8% year-on-year decline, the most significant drop in recent months [3][9] - Average active balances increased to £1,915, which is 4.5% higher than September 2024, indicating ongoing financial pressure on households [4][9] Payment Trends - The percentage of total balance paid fell to 34.6%, a decrease of 6.5% year-on-year, suggesting that customers are struggling to pay down their balances [4][9][10] - Payments to balance saw a slight increase of 1% month-on-month, but remain significantly lower than the previous year [4][10] Delinquency Rates - There has been a 3.7% month-on-month increase in customers missing three payments, which is also 1.7% higher than September 2024, indicating a trend towards deeper delinquency [5][9][10] - Customers who have held their credit cards for five years or more exhibit the highest delinquent balances, with their delinquent balance being twice as high compared to their overall balance [6][7] Key Metrics Summary - Key metrics for September 2025 include: - Average credit card spend: £805, down 3.8% year-on-year [8][9] - Average card balance: £1,915, up 4.5% year-on-year [8][9] - Percentage of customers missing three payments: 0.21%, up 3.7% month-on-month [10] - Average credit limit: £5,900, up 2.5% year-on-year [10]

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].