Percentage of total balance paid drops, leaving average active balances at the highest level despite lower spending year-on-year
FICO (NYSE: FICO) -
The August 2025 credit card data analysis from global analytics software leader FICO shows that the average active balance continues to trend up, accelerating to its highest level yet, while the percentage of total balance paid has dropped. These factors, combined with rising overlimit usage, suggest financial stress is intensifying for cardholders.
Highlights
- Spending rose in August to an average of £815, up 1.5% month-on-month but 2.4% lower year-on-year
- Average active balances increased by 1.1% month-on-month to £1,915 and remain 4.9% higher year-on-year
- The percentage of total balance paid dropped to 34.3%; a 1.6% decrease month-on-month and 6.2% lower than the same month last year
- The average balance of accounts with one missed payment is now 8.7% higher than August 2024 at £2,400
- Accounts over their credit limit increased by 5.8% month-on-month and 2.2% year-on-year
- Withdrawal of cash on credit cards increased by 1% month-on-month
FICO Comment:
After the usual seasonal dip seen in July, August saw a modest recovery in spending. Average active balances have trended significantly upward, with August seeing the strongest monthly increase since May. This continues the upward trend and remains 4.9% higher than the same time last year. One of the primary drivers behind rising balances is the accelerating downward trend in the percentage of total balance paid. August 2025 saw this drop to 34.3%.
Also reflecting the financial juggling act many households are currently playing, the pattern of missed payments continued to be erratic. The percentage of customers missing one payment decreased by 3.5% month-on-month, continuing the overall downward trend with a significant 16% decrease year on-year despite monthly volatility. However, the average balance for these accounts increased by 0.5% month-on-month to £2,400, now 8.7% higher than this time last year, showing the steepest year-on-year growth among missed payment categories.
There was a 4.2% monthly increase in the percentage of customers missing two payments, although this is 2.8% lower than the previous year, showing more stability than single-payment misses. The average balance for accounts with two missed payments rose in August 2025 by 0.6% on July to £2,895, remaining 6.0% higher than August 2024 and continuing the upward trend.
Customers missing three payments dropped by 1% month-on-month and is 4.1% lower than the previous year. For these accounts, the average balance fell1.1% month-on-month to £3,265 but remains 7.4% higher than last year, indicating persistently elevated balances for the most delinquent customers.
Another sign of financial distress is the 5.8% increase since July in overlimit accounts, although average credit limits remained virtually unchanged at £5,880.
The combination of accelerating balance growth, declining payment rates and increasing overlimit usage suggests heightened financial stress among cardholders. Risk teams should intensify monitoring of payment-to-balance ratios and consider implementing proactive intervention strategies for customers showing early warning signs. Given that the average balance of three missed payments is growing faster than overall balance, particular attention should be paid to credit limit management and early-stage collection strategies to prevent further balance escalation.
Key Trend Indicators UK Cards August 2025
Metric | Amount | Month-on-Month Change | Year-on-Year Change |
Average UK Credit Card Spend | £815 | +1.5% | -2.4% |
Average Card Balance | £1,915 | +1.1% | +4.9% |
Percentage of Payments to Balance | 34.30% | -1.6% | -6.2% |
Accounts with One Missed Payment | 1.34% | -3.5% | -16.0% |
Accounts with Two Missed Payments | 0.32% | +4.2% | -2.8% |
Accounts with Three Missed Payments | 0.20% | -1.0% | -4.1% |
Average Credit Limit | £5,880 | +0.1% | +2.7% |
Average Overlimit Spend | £90 | -1.1% | +2.3% |
Cash Sales as a of Total Sales | 0.90% | +4.2% | -1.7% |
Source: FICO
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.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.
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FICO UK PR Team
Wendy Harrison/Matthew Enderby
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