New credit card data analysis from FICO for August 2025 indicates heightened financial stress among UK cardholders, marked by accelerating balance growth, declining payment rates, and increased overlimit usage.
The August 2025 analysis from global analytics software leader FICO shows that the average active balance continued to trend upward, reaching its highest level yet. Concurrently, the percentage of the total balance paid has decreased, and overlimit usage is on the rise, collectively pointing to intensifying financial pressure for cardholders.
Credit card spending in the UK saw a modest recovery in August, reaching an average of £815, a 1.5% increase month-on-month. However, this figure remains 2.4% lower year-on-year. Average active balances rose by 1.1% month-on-month to £1,915, standing 4.9% higher than the same period last year.
A primary factor contributing to rising balances is the accelerating downward trend in the percentage of the total balance paid, which dropped to 34.3% in August 2025. This represents a 1.6% decrease month-on-month and is 6.2% lower than August 2024. Additionally, accounts exceeding their credit limit increased by 5.8% month-on-month and 2.2% year-on-year, further signaling financial distress.
The pattern of missed payments continued to show volatility, reflecting the financial challenges many households face. The percentage of customers missing one payment decreased by 3.5% month-on-month and 16% year-on-year. Despite this, the average balance for these accounts increased by 0.5% month-on-month to £2,400, marking an 8.7% rise from August 2024. Accounts with two missed payments saw a 4.2% monthly increase, though this category is 2.8% lower than the previous year. The average balance for these accounts rose by 0.6% month-on-month to £2,895, holding 6.0% higher than August 2024.
Customers missing three payments decreased by 1% month-on-month and 4.1% year-on-year. However, the average balance for these most delinquent accounts, while falling 1.1% month-on-month to £3,265, remains 7.4% higher than the previous year. FICO advises risk teams to intensify monitoring of payment-to-balance ratios and consider proactive intervention strategies for customers showing early warning signs. Given that the average balance of accounts with three missed payments is growing faster than the overall balance, particular attention should be paid to credit limit management and early-stage collection strategies to prevent further balance escalation.
These card performance figures are derived from the FICO® Benchmark Reporting Service, drawing data from client reports generated by the FICO® TRIAD® Customer Manager solution, which is utilized by approximately 80% of UK card issuers.
FICO, founded in 1956, specializes in predictive analytics and data science to enhance operational decisions globally. The company holds over 200 US and foreign patents and its FICO® Score is a standard measure of consumer credit risk in the US, deployed in more than 40 countries.
