Credit card spending rises to £21.2bn and 47.9% of balances incur interest

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, comments on the card spending statistics from UK Finance, out today.

“The latest statistics from UK Finance show 47.9% of outstanding credit card balances are incurring interest, which could be costly. The Moneyfacts average credit card purchase APR is sitting at a record high of 35.8% APR for November 2025, so switching debts to a 0% balance transfer credit card offer is wise. Those shoppers taking advantage of Black Friday deals might want to consider using a 0% purchase offer, particularly if they are buying more expensive goods like electronics, or they could decide to move their card debts thereafter. At the moment the lengthiest balance transfer deal is 0% for 35 months, available from HSBC, Barclaycard and TSB. However, the fees to transfer debts vary, so it’s important to check these carefully. It may be more sensible for some borrowers to opt for a shorter-term deal which charges a lower fee.

“Only paying the minimum repayment on a credit card will leave debts hanging overhead for far too long. It is much more sensible for spenders to set up a fixed minimum repayment. Shoppers using a credit card charging 35.8% APR with a debt of £300 would take a whole year and eight months to pay it off based on a fixed repayment of £20, and it would cost £84 in interest. Increasing this payment to £50 per month would clear the debt in seven months, and more than halve the interest charged (£30).

“There has been a rise in the volume of online credit card transactions of 11.4% year-on-year, according to UK Finance. This is somewhat understandable in light of the time of year, where many could be covering costs over the summer holidays. As we edge closer to Black Friday and the festive season, there will be many shoppers making purchases online to take advantage of time sensitive discounts. Credit cards are a great choice to use for online shopping, they protect shoppers who may be ripped off, as any goods or services not received which are valued over £100 up to £30,000 are covered under section 75 of the Consumer Credit Act.

“It’s wise for consumers to regularly check their credit report before they apply for a credit card, as any incorrect information could have a negative impact on their score if not corrected. If consumers can prove they are able to handle debts sensibly, and pay them back, then they will be seen favourably by providers. However, it is worth pointing out that no one is guaranteed to get the most lucrative offer, so it is essential to shop around to find the best offer, but try not to make too many credit checks in the process.”