Spending, balances, payments, and cash usage on UK credit cards followed expected seasonal trends in November and December 2024, with spending and balances reaching the highest averages that global analytics software provider FICO has ever recorded. While missed payments fell in November and December, average balances rose on accounts where payments have been missed.

Highlights 

• Average credit card spend rose in the lead-up to Christmas 2024, reaching £860 in December; a 6.8% increase on November and a 1.5% increase on December 2023
• December saw the highest average balance since FICO records began in 2006 at £1,860 - 4.5% higher than December 2023
• The percentage of overall balance paid fell by 3% in November compared to October and by a further 0.5% in December, with 35.86% of the balance being paid off in December 2024
• Fewer customers missed payments in November and December 2024 than across the same two months in 2023
• Customers using their credit card to withdraw cash fell for the third month in a row, standing at 3.19% in December 2024

FICO Comment 

Average spending saw typical seasonal increases in the run-up to Christmas. However, with average spend reaching £860 in December – a 6.8% increase on November and the highest since FICO records began in 2006 – the ongoing impact of continued inflation could dent consumer affordability through 2025.

Similarly, average credit card balances reached an all-time high in December at £1,860, with typical seasonal pressures seeing a 3% month-on-month decrease in the percentage of balance paid in November and a further 0.5% drop in December. If seasonal patterns continue, the balance paid is expected to rise in January as consumers focus on paying off Christmas spend.

For customers missing one, two or three payments, the average balance increased year-on-year in November and December – another indicator of the financial pressures faced throughout 2024. Average balances for one missed payment are now £2,255, for two payments £2,780 and for three payments £3,190.

The usual seasonal trend sees a reduction in customers missing one payment in the run-up to Christmas, as people want to keep lines of credit open. However, in December 2024 there was a 9.3% increase compared to November. And after four consecutive decreases in the percentage of customers missing three payments, there was a 1.2% increase in November month-on-month and a further 2.2% increase in December. As indebted customers struggle with payments in the new year, this trend is expected to continue in early 2025.

Given the continued financial pressures affecting households, risk managers should review both limit management and collections contact strategies in order to help customers avoid getting into long-term debt.

These card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service. The data sample comes from client reports generated by the FICO® TRIAD® Customer Manager solution in use by some 80% of UK card issuers. For more information on these trends, contact FICO