Spending fell by 8.6% post-Christmas, while consumers increased their payments to balance by 2.7%. Credit card providers will, however, be encouraged by the first increase in payments to balance since July 2023.
According to the FICO UK Credit Card Market Report for January 2024, consumer credit behaviour followed typical start-of-year patterns. Spending fell by 8.6% post-Christmas, while consumers increased their payments to balance by 2.7%. Credit card providers will, however, be encouraged by the first increase in payments to balance since July 2023.
Highlights
- Average card spend dropped by 8.6% month-on-month, equating to an average spend of £775
- Reflecting continued high prices, year-on-year spend in January was 2.4% higher than 2023
- Increased payments to balance led to a 0.7% drop in average card balances, which now stands at £1,770
- Fewer cardholders missed one card payment in January compared to December
- There was an increase in the number of cardholders who missed two and three payments in January – 12.6% and 1.4% – respectively
- The percentage of accounts using the cash limit decreased for the fourth month in a row after peaking in September
Fintech Insights: Franchising Trends in the Digital Age
Key Trend Indicators – UK Cards January 2024
|
Metric |
Amount |
Month-on-Month |
Year-on-Year |
|
Average UK Credit Card Spend |
£775 |
-8.6% |
+2.4% |
|
Average Card Balance |
£1,770 |
-0.7% |
+7.1% |
|
Percentage of Payments to Balance |
37.6% |
+2.7% |
-4.6% |
|
Accounts with One Missed Payment |
1.7% |
-1.2% |
-0.1% |
|
Accounts with Two Missed Payments |
0.4% |
+12.6% |
+1% |
|
Accounts with Three Missed Payments |
0.2% |
+1.4% |
+4.7% |
|
Average Credit Limit |
£5,635 |
+0.3% |
+1.1% |
|
Average Overlimit Spend |
£85 |
-2.3% |
-5.5% |
|
Percentage of Customers using Credit Cards to Take Out Cash |
3.3% |
-3.6% |
+6.2% |
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