Credit, Collections & Insolvency News
A new analysis of its credit card data for 2025 by global analytics software specialist FICO has found a fundamental shift in market dynamics from traditional cyclical patterns to clearer management of affordability challenges. The year was characterised by consumers struggling to manage existing debt levels, with average balances reaching record highs while payment rates fell. The…
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New research from Compare the Market suggests there is still some uncertainty around how credit cards factor into mortgage applications, with 21% of prospective first-time buyers believing they need to be completely debt-free to be approved for a mortgage1 The survey findings indicate that around one in ten prospective first-time buyers believe they must never…
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The UK is facing a growing financial literacy crisis, with millions of households navigating credit without fully understanding how it works, according to new research from Creditspring. As borrowing becomes faster and more accessible, consumers risk making costly, but entirely avoidable, financial decisions. Across the UK, understanding of even the most basic credit concepts remains…
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The latest EY ITEM Club data has forecasted that consumer credit lending growth will remain largely flat at 5.8% in 2026 (from 6.1% in 2025), 5.7% in 2027, and 5.3% in 2028. Even though consumer credit remains expensive, demand is expected to remain steady over the coming years. This is largely due to a combination…
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72% of consumers abandon their baskets after being declined for credit at checkout, despite over half saying they would look for an alternative finance option. The results, from independent research commissioned by Payl8r, with the figures suggesting that single-lender checkout structures may be contributing to avoidable conversion loss. Payl8r says that the research reveals ‘false…
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The Bank of England has announced that it has held interest rates at 3.75% following the first meeting of its Monetary Policy Committee of 2026. The Bank has voted by 5 to 4 to keep rates on hold at 3.75%. Four members voted to reduce the base rate to 3.5%, giving an indication of forward guidance. Commenting…
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Analysis of credit card data for November 2025 by global analytics software leader FICO has found that 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…
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Latest data from the Bank of England data has shown that net mortgage approvals for house purchase fell by 3,100 to 61,000 in December 2025. By contrast, approvals for remortgaging rose by 1,600 to 38,400 in December. Net borrowing of mortgage debt by individuals remained unchanged when compared to November at £4.6 billion in December. The…
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Research by Pepper Money has found that more than 16 million people have now experienced adverse credit, showing that rising living costs and financial pressures are driving a sharp increase in credit struggles across the UK, the highest figure since the study began nine years ago. The data showed that adverse credit is now increasingly common…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in November 2025 by 3% compared with the same month in 2024. In the eleven months to November 2025, new business in this market was 5% higher than in the same period in 2024. The credit card and…
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New data from Premium Credit has shown that 44% of insurance customers are using credit or are reliant on finance from insurers and premium finance companies. The research showed that nearly six out of ten (57%) consumers use some form of credit to pay for one or more policies they have.. Whilst 44 per cent of…
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Latest credit card analysis by Fico has revealed that pre-Christmas spending and average active balances fell, whilst average balances for missed accounts remain high, reflecting continued financial pressure. The October 2025 data showed a decline in credit card spending compared with the previous month and the previous year. Lower spending led to average balances falling…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in October 2025 by 6% compared with the same month in 2024. In the ten months to October 2025, new business in this market was 5% higher than in the same period in 2024. The credit card and…
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