Outstanding debt on credit card accounts grows by 5.6%

Latest UK Finance card spending data has found that outstanding balances on credit card accounts have grown by 5.6 per cent over the twelve months to February and 48.8 per cent of outstanding balances incurred interest compared to 50 per cent in February 2024.

There were 334.3 million credit card transactions in February, 1.4 per cent more than in February 2024. The total spend of £19.1 billion was 1.4 per cent higher than February 2024 with the number umber of contactless credit card transactions 4.8 per cent higher than February 2024. The number of contactless debit card transactions was 2.1 per cent lower than February 2024.

There were 2 billion debit card transactions in February, 1.9 per cent fewer than in February 2024. The total spend of £59.1 billion was 2.9 per cent lower than February 2024.

There were 1.92 billion debit and credit card transactions in the UK in February, 2 per cent fewer than in February 2024. The total spend of £65.7 billion was 2.9 per cent lower than February 2024.

Contactless payments accounted for 65 per cent of all credit card and 76 per cent of all debit card transactions.

There were 1.42 billion contactless card transactions in February, 1.3 per cent fewer than the 1.44 billion in February 2024. The total value of contactless transactions was £22.4 billion in February, a 1.4 per cent increase on £22.1 billion in February 2024.