Credit card spending is on the rise

New figures from UK Finance show that credit card use is creeping up, and so too are the balances people are carrying from month to month. While this might not sound alarming on its own, it could be an early warning sign that more households are struggling to keep up with rising costs.

What the numbers say

In May, UK cardholders made 394.4 million credit card transactions, up 3.1% compared with May 2024. The total spend came in at £21.8 billion, nearly 2% higher than last year.

At the same time, the amount still owed on credit card accounts grew by 6.4% over the past year. Almost half of these balances (47.5%) are now incurring interest, meaning many people aren’t paying off their cards in full each month.

This suggests that more households are relying on credit cards not just for big-ticket purchases but for day-to-day spending, and they’re finding it harder to clear what they owe.

Why this matters

Carrying a balance on your card can quickly become expensive. With interest rates on credit cards often sitting above 20%, even a relatively small balance can grow into something much harder to manage if it isn’t cleared.

The fact that outstanding balances are climbing faster than spending points to a potential squeeze: people may be leaning on credit to bridge the gap between wages and rising living costs. If that pattern continues, we could see more people falling into problem debt.

What you can do if you’re worried

If you’re finding yourself using your credit card more often – or struggling to clear the balance, you’re not alone. There are steps you can take to stop the debt from spiralling:

• Check your spending patterns: Use our free budgeting planner to review whether you’re relying on credit for essentials like food or bills. This can be an early warning sign of financial strain.
• Pay more than the minimum: Even an extra £10–£20 a month can make a big difference in cutting down interest and reducing your balance faster. Find out more about dealing with persistent debts here.
• Explore balance transfer options: Moving your debt to a 0% balance transfer card can give you breathing space to pay it down without racking up more interest.
• Ask for help early: If you’re worried about falling behind, speak to us. We can help ease the pressure and find a solution that’s right for you.

Looking ahead

The latest figures are a reminder that while debit card spending has stayed steady, credit card debt is quietly ticking upwards. For many, it’s a way to cope with rising costs, but it comes with risks if left unmanaged.

Read more about how credit cards work here.