Dramatic increase in consumers borrowing to pay bills

Intrum’s annual European Consumer Payment Report has shown that consumers can meet their immediate needs, but their reliance on borrowing has increased dramatically, suggesting that pressure is growing beneath the surface.

The data showed that late payment levels have remained static; 72% of consumers have borrowed money or used credit to pay bills in the past six months, up from 51% last year. A varied picture of financial vulnerability is revealed, with some increasingly cautious about spending and others turning to flexible payment options to cope.

The Payment Report, based on a survey of 20,000 consumers across 20 European countries, finds that almost three quarters (72%) of UK consumers have borrowed money or used a credit card to pay bills at least once during the past six months, up from 51% in 2025(mortgages excluded). This is much higher than the European average of 56% and the highest rate of any of the European countries. At the same time, 27% say they have paid at least one bill late during the past 12 months, a similar level to last year (28%).

The findings point to growing financial pressure beneath otherwise resilient household finances. Eight in ten consumers (81%) remain confident that they can afford everyday essentials, and 79% are confident they can pay all their bills each month. However, this picture of resilience is complicated by high levels of borrowing as consumers may be more reliant on debt to meet their commitments than they were last year.

Economic uncertainty is also affecting consumers’ willingness to spend and take financial risks. Three quarters say the economic environment has made them more nervous about making a major purchase, compared to 49% last year. Meanwhile, 64% say they are more wary of taking financial risks, up from 50%.

Consumers are responding by strengthening their financial buffers where possible. In the UK, 74% now say they put money aside each month for unexpected expenses, up from 59% in 2025, while 42% say they are prioritising saving over spending, compared with 40% last year.

Taken together, the findings point to a more cautious financial mindset, as consumers seek to strengthen their financial buffers while managing continued pressure on household finances.

The changing financial environment is also reflected in how consumers choose to pay. Four in ten European consumers have used buy now, pay later services during the past year, although the role these services play differs significantly depending on consumers’ underlying financial health. Among financially resilient consumers, 60% say they use BNPL primarily for convenience, compared with 8% of fragile BNPL users, who are more likely to use it to manage cash flow, buy essentials, or make purchases they could not otherwise afford. Consumers are also increasingly turning to technology to manage their finances. Along with Germany, UK consumers are the biggest users of AI in personal finance, with 44% saying they use AI tools for this reason, more than triple the 14% recorded in 2025.

52% of UK consumers say they would be comfortable using an AI assistant to resolve a payment issue or set up a payment plan. At the same time, 60% say they would trust AI more if they knew they could speak to a human adviser when needed.

The findings suggest that digital tools are becoming a more established part of how consumers manage financial decisions, while human support remains important when circumstances become more complex.

Intrum’s UK Managing Director Phil McGilvray said “UK consumers have weathered several economic storms in the past few years, and it is heartening that most are still able to meet their commitments and provide for their families. However, the rise in borrowing to pay bills is concerning as it may be masking deeper problems. Consumers can still be paying every bill while becoming increasingly reliant on borrowing to do so. This makes them vulnerable to future economic shocks.”