Pre-Christmas spending remained below 2024 figures, but balances rose as payments fell to the lowest level since 2021
FICO (NYSE:FICO)
Analysis of credit card data for November 2025 by global analytics software leader FICO has found spending, balances and payments followed seasonal trends in the run-up to Christmas. However, while spending rose as expected during November, it was lower year-on-year, signalling continued pressure on household finances. Average balances resumed an upward trajectory as payment rates dropped to the lowest level since 2021, and overlimit usage increased, meaning risk and collections teams need to be particularly vigilant.
Highlights
- Spending rose by 2.6% from October to November, reaching an average of £785, but remained 2.4% lower year-on-year
- Average active balances reached £1,915, representing a monthly increase of 0.8% and an annual rise of 5%
- 33.4% of the overall balance was paid in November 2025, 2.8% down on the previous month and 7.4% down from November 2024
- Average balances for customers missing payments have increased across all categories, month-on-month and year-on-year
- The number of credit card accounts over their limit in November increased by 6.4% month-on-month and 5.9% year-on-year
- The percentage of customers using credit cards to take out cash showed the most significant seasonal decline, decreasing by 12.3% from the previous month and 15.2% year-on-year
FICO Comment:
The combination of the lowest payment rates since 2021 (33.4%) and increasing overlimit usage signals significant financial stress as consumers entered the critical Christmas spending period. With the likelihood of further deterioration in December before some recovery in January, when consumers typically focus on paying off festive spend, risk and collections teams should implement enhanced monitoring for customers showing early warning signs of payment distress.
The continued growth in delinquent balances across all categories indicates that when customers do miss payments, they are doing so with significantly higher debt loads than in previous years. This will make recovery more challenging and require more intensive collection strategies.
Compared to November 2024, there was a mixed picture across accounts with one, two and three missed payments. Improvements were seen in early-stage delinquency, while deterioration was evident in the later stages.
Effective account management decisions must consider a consumer's current circumstances and ability to afford their current levels of debt, as well as their ability to absorb additional debt – especially if they have recently paid off outstanding balances and their overall behavioural risk has improved. Proactive outreach is a key factor here; it's the difference between helping a customer stay on track and dealing with a full-blown arrears situation later. It is also at the heart of the Consumer Duty; lenders must ensure any solution offered doesn't set up the customer to fail.
Key Trend Indicators UK Cards – November 2025
Metric |
Amount |
Month-on-Month Change |
Year-on-Year Change |
Average UK Credit Card Spend |
£785 |
+2.6% |
-2.4% |
Average Card Balance |
£1,915 |
+0.8% |
+5% |
Percentage of Payments to Balance |
33.4% |
-2.8% |
-7.4% |
Accounts with One Missed Payment |
1.3% |
-6.9% |
-1.7% |
Accounts with Two Missed Payments |
0.3% |
+1.7% |
+1.9% |
Accounts with Three Missed Payments |
0.2% |
+2.2% |
+3.5% |
Average Credit Limit |
£5,920 |
+0.2% |
+2.6% |
Average Overlimit Spend |
£90 |
-3.2% |
0% |
Cash Sales as a % of Total Sales |
0.8% |
-5.4% |
+2% |
Source: FICO |
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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.
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