The latest analysis from Fair Isaac Corporation, a global analytics software leader, reveals significant trends in the UK credit card market. The average active balance on UK credit cards has increased to £1,895, marking a 5.1% rise year-on-year. This growth in balances comes despite a seasonal reduction in spending, which fell to an average of £800, down by 1.6% year-on-year. The percentage of the balance being paid off by customers also decreased by 7.7% compared to the previous year, highlighting ongoing affordability challenges for UK consumers. Another area of concern is missed payments, with accounts having one missed payment rising by 10.1% month-on-month, though they decreased by 10% year-on-year. Accounts with three missed payments saw an 8.0% increase month-on-month, despite a 5.1% decline year-on-year. The average balance for customers missing three payments increased to £3,300, a 3.1% month-on-month and 8.1% year-on-year increase. These trends underscore the latent risk for lenders, emphasizing the need for a focus on limit strategies and the early identification and treatment of customers experiencing financial difficulties. The average credit limit rose slightly by 2.8% year-on-year to £5,875, while the average overlimit spend saw a modest 1.1% increase. Cash sales as a percentage of total sales continued to decline, reflecting a 4.5% year-on-year decrease.